The CEO of confirmed the refund and assured investors that new processes and features have been implemented to prevent a recurrence.

The drop in FTX highlighted the importance of proofing reserves to prevent risk and boost investor confidence, urging leading crypto exchanges to publicly release their cold and hot wallet addresses. When attempting to verify funds on, cold storage information revealed a suspicious transfer of 320,000 Ether.

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to the wallet address associated with on October 21, 2022

On-chain data confirms the transfer of 320,000 ETH from to Source: Eterscan
Community member jconorgrogan raised concerns about moving 320,000 ETH from’s cold wallet to given previous claims that 100% of cryptocurrencies owned by users are stored offline in cold storage in collaboration with hardware wallet provider Ledger .

As discussions escalated, Chris Marsalek, CEO of, revealed that funds representing 82% of’s ETH held in cold storage at the time of writing were accidentally sent to

“This was supposed to be a move to a new cold storage address, but it was sent to a whitelisted external exchange address.”
Speaking to Cointelegraph, a representative from clarified that the address whitelisted by belongs to Despite this, Marszalek confirmed that returned the funds to cold storage and assured investors that new processes and features have been implemented to prevent a recurrence.

While on-chain data confirms that returned 285,000 ETH to, Marszalek stated that all funds were returned. Further investigation showed that the missing 35,000 ETH was sent to another address that has not yet been confirmed by the crypto exchange.

Later in a series of tweets, Marszalek explained what happened, confirming that all operations are working fine.

This is not the first time has made headlines due to an accidental translation. Back in August 2022, it was discovered that had accidentally sent AU$10.5M (worth over $7M) to Melbourne investors as a AU$100 ($67) refund. The incident happened as early as May 2021 but was not discovered until the annual review in December 2021.

Related: Commits to Confirming Reserves Upon Completion of Solana FTX-Backed Deposits and Withdrawals

Marszalek promised to release a verified confirmation of reserves on Nov. 10, emphasizing the importance of transparency and user security.

With most crypto companies willing to share their proof of reserves, investors now have the ability to prove the existence of their funds, ultimately preventing business owners from misusing cold storage funds.

Source: CoinTelegraph