Withdrawals at Crypto.com increase after its CEO admits a transaction problem

Many users decided to withdraw their funds from Crypto.com over the weekend after the company’s CEO mentioned that the cryptocurrency exchange had mishandled a transaction of about $400 million.

Crypto.com CEO Kris Marszalek commented on Twitter that the transfer was sent to the wrong type of account on another exchange.

Fear runs fast

Concern over Singapore-based Crypto.com spread across the Internet over the weekend, with prominent digital currency figures aiming for the company.

Changpeng Zhao, CEO of Binance, Crypto.com’s most enormous organization, appeared to question the nature of the transfers without naming the company, which may have fueled Sunday’s withdrawals, according to cryptocurrency industry players.

Marszalek dismissed concerns about Crypto.com, tweeting later Sunday that the October transfers had “created both fear, uncertainty, doubt and speculation on Twitter” weeks later.

Several users have withdrawn their cryptos with values in the millions.

On Sunday, users withdrew a net cost of $14 million worth of the cryptocurrency ether and $39 million worth of other tokens linked to the Ethereum network from Crypto.com. Throughout that same time, Crypto.com moved $33 million of other wallets to satiate consumer demand, according to Argus.

Firngía that Crypto.com possessed sufficient funds to satiate user withdrawals, mentioned Owen Rapaport, co-founder of Argus.

Crypto.com is a medium-sized exchange.

The transaction that caused concern for Crypto.com involved the transfer of 320,000 ether or about $400 million of the token at the time to a wallet associated with cryptocurrency exchange Gate.io on Oct. 21.