The collapse of Sam Bankman-Fried‘s FTX, the world’s third-largest crypto exchange, is being discussed in minute detail on Twitter. Most recently, various tweets warned that other crypto exchanges were transferring funds to each other to be able to show their reserves. In other words, the reserves are missing and can only be represented with such tricks. Binance founder and CEO Changpeng Zhao issued a warning.
Thus, crypto exchange Crypto.com announced via Twitter that it “accidentally” transferred Ether worth about $400 million to crypto exchange Gate.io but received it back shortly after. During the period of this transaction, Gate.io’s reserves were audited and confirmed. Therefore, it is speculated that the only reason for this “accidental” transfer was to allow Gate.io to present sufficient reserves.
There are already calls on Twitter to pull one’s cryptos from Crypto.com and Gate.io. The next Crypto Exchange run could be imminent.
We are currently warning all cryptocurrency holders to be very careful and prefer to hold their funds on cold wallets or on TrustWallet rather than on centralized exchanges like FTX.
If you have any information about crypto exchanges and related irregularities, please let us know via our whistleblower system, Whistle42.