Is This The Next Exchange To Collapse After FTX?

The crypto market is being blanketed by uncertainty, especially in the last few days after the FTX-Alameda Research drama began. These days, the star cryptocurrency, Bitcoin, lost its important key level of $20K and has dropped to the $15K area. The same is with altcoins like Ethereum, BNB, XRP, Cardano among others.

At the time of reporting, Bitcoin is selling at $15,950 after a fall of 5.29% over the last 24hrs.

Now, after FTX collapsed and has filed for bankruptcy, other exchanges too are gradually losing their trust. The same is spoken by Altcoin Daily where the host informs his 1.26M Youtube subscribers about Crypto.com withdrawals.

Next Crypto Exchange Collapse Around The Corner ?

The Singapore based crypto exchange, Crypto.com reported on Nov 13 that the firm transferred nearly $400 million in Ethereum to a whitelisted Gate.io address instead of a new cold storage address. Kris Marszalek, Crypto.com CEO stated via Twitter post that on Oct 21, the platform was supposed to send 320,000 crypto to one of its online wallets but mistakenly sent it to a whitelisted address connected with Gate.io.

It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with Gate team and the funds were subsequently returned to our cold storage. New process and features were implemented to prevent this from reoccurring.

— Kris | Crypto.com (@kris) November 13, 2022

The host also mentioned Kris claiming Gate.io has returned all the funds and they have only a single digit USD million balance on Gate.

This mistake by Crypto.com has adversely affected the platform as customers have started pulling out their funds after the news broke out. Moreover, the exchange’s native token, CRO, has plunged more than 15% in the last 24hrs.

Binance CEO Warns For Next Exchange Collapse

Furthermore, Altcoin Daily throws light on Binance CEO, Changpeng Zhao tweet where he has urged traders to stay safe as this is a clear sign of problems.

If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away. Stay #SAFU. 🙏

— CZ 🔶 Binance (@cz_binance) November 13, 2022

Next, the host talks about another blunder done by Huobi exchange where a wallet address linked to the exchange transferred 10K ETH to Binance and OKX deposit wallets. However, Huobi claimed that all funds are 100% safe.

The host wraps his analysis quoting that these events point towards lack of confidence towards the crypto market along with increasing uncertainty.