accidentally transferred $400 million worth of ETH to another exchange, CEO says

Quick Take

  • accidentally sent more than 320,000 ether ($400 million) to Gate on Oct. 21.
  • CEO Marszalek said it was an erroneous transfer and that all the funds were recovered. mistakenly sent more than 320,000 ether ($400 million) to a rival crypto exchange called Gate on Oct. 21. This was revealed today after a Twitter user posted a screenshot inquiring why a large amount of ether had suddenly moved out of a few weeks ago. 

The firm’s CEO, Kris Marszalek, replied to the tweet, saying that the transfer was a result of human error. Marszalek said someone on his team had erroneously sent about 80% of the ether in their reserves to a "whitelisted exchange.” The funds had been scheduled to move to a new cold storage wallet, he said.

"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 the Gate team and the funds were subsequently returned to our cold storage," Marszalek said.

Marszalek added that all of the ether was recovered. 


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"The ETH transfers were made over three weeks ago, on October 21st to’s whitelisted corporate account at Gate. proceeded to withdraw the funds back to its cold wallets over the following days, a spokesperson from the exchange told The Block in a statement. "The entirety of ETH was successfully withdrawn by and returned to our cold storage."

The incident comes at a time when trust for centralized exchanges has declined in the wake of the collapse of FTX and users are increasingly scrutinizing how exchanges manage their funds.

Still, this was not the first time has made such an error. Last year, a employee erroneously transferred more than $7.1 million to a customer. Later, the firm sued the person for the return of the funds.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]


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