Source:Crypto.com and Gate.io public logos, plus editing by the author
I hate being alarmist, but something seems to be wrong here. Be aware since we may be potentially facing another FTX situation.
On the last 21st of October, Crypto.com sent 320.000 ETH to Gate.io.
Source: etherscan.io
How would a Tier1 Exchange send by mistake 320.000 ETH to a rival Tier1 Exchange, depleting almost 82% of all their ETH reserves? I have read it on some Italian websites that are supposed to make divulgation about cryptocurrencies, but this news seemed too awkward to me not to think of a bigger picture.
Then comes the Tweet from Changpeng Zao that made me think:
Was the Crypto.com transaction really a mistake, or was it a real thing?
https://twitter.com/cz_binance/status/1591690261029130240
- cz_binance
Then I discovered this:
Source: https://www.gate.io/proof_of_reserves
Have you noticed the date? Just a week after the mistake from Crypto.com.
What a Timing!
Then, digging deeper, I saw that Gate.io refunded the ETH to Crypto.com after 1–2 days after the Audit was published.
So why should Gate.io send the amount back 8–9 days after the “mistake”? Why didn’t they send the ETH back to Crypto.com right away?
Source: https://etherscan.io/txs?a=0x6262998ced04146fa42253a5c0af90ca02dfd2a3&p=2
Someone has already started addressing suspicions and malfidence. I do not want to sound malicious as well, but it seems quite strange to me that:
On the 21st October Crypto.com accidentally send 320k ETH to Gate.io
On the 28th of October, Gate.io made the proof of funds
On the 29th and 30th of October, Gate.io sent back to Crypto.com the ETH.
Is this all a coincidence, or is Gate.io trying to hide something?
The first thing to think about is to be careful about Gate.io performances since a Kansas City move may happen here: while all are looking at FTX, Gate.io (or other players we will eventually face soon) may want to clean up something.
Let’s see what happens.
Kudos to J Conor Grogan for helping us connect the dots and being among the first to share this idea publicly.
As usual, Do Your Own Research before taking any actions!
Mike