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UPDATE: Crypto.com acknowledge the bug and refunded the full amount, at the time of writing this update the crypto.com team confirmed that they are working on fixing the bug and the defi wallet will hopefully be fixed ASAP. Lesson learned; test every transaction even with wallet and address that you know are safe and already used in the past.

When scanning the QR code of a taproot address with the DefiWallet of crypto.com the app will correctly show the taproot address, not give any warning of unsupported format or other error message (screenshot from my second attempt to recreate the bug with different taproot address https://imgur.com/a/gYPZ5KT), it will give a first confirmation with a reference transaction ID that the bitcoin transaction was broadcasted to the network with the correct recipient address, but in reality it will automatically convert the taproot address to a segwit address and send the bitcoin to this random generated address making the coin lost forever.

  1. taproot address generated from ledger - https://imgur.com/k37DcAo

  2. first confirmation showing the correct taproot address scanned in the previous step with a reference transaction ID https://imgur.com/3PahnKJ transaction ID: https://blockchair.com/bitcoin/transaction/c834fb3bc1e849b1e708b15728e55796adb7d44bf1b83b2b35dcaba4eb87b54b?from=crypto.com

  3. After the transaction has been broadcasted to the network and it receives the first confirmation the defiwallet updates the home-screen showing the converted segwit address where it actually sent the bitcoin with the same transaction ID as reference, proving that the first confirmation screen is the result of a bug. https://imgur.com/xNGTSN5 - https://imgur.com/csxK8U0

  4. Video on my second attempt to recreate the bug and using a second bitcoin software wallet (trustwallet) to show that the problem is not my phone or some malicious software installed on the phone but the actual crypto.com defiwallet - https://streamable.com/91ksgg

  5. since my first chat with them the defiwallet has been under "maintenance for bitcoin transaction" - https://imgur.com/QAzoNSq

I understand something similar has already happened Is it possible to convert a taproot address into a native segwit address? I have contacted the crypto.com support chat, I have sent them the same information and for the last 12 days they have been "investigating" the issue. I'm aware the coin are lost forever but the lack of response from crypto.com team is awful and I have no idea how many people have already lost and will lose their bitcoin because of crypto.com.
my segwit address bc1q3exlju6gr6cwu3s3hxnjssjpxnmafnxtlms6cm

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  • If what you say is true, I'm sorry for what happened to you, and I stand by my response in bitcoin.stackexchange.com/questions/111440/…: this is painfully incompetent, and you should demand your money back. That said, I don't think there is any new question here. It also sounds like they may be working on fixing it already. May 17 at 20:10
  • Yes I believe the problem is the same experienced by the other guy, I have not found anything else apart from the previous post, I hope this post will help someone in the future if they happen to be in my same situation, this is more of a warning post than a question honestly, i've made peace with myself and think of the 0.21btc as a donation to the network. May 17 at 20:24
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    @froginspace: You have good grounds in demanding that crypto.com reimburse you. That's what happened in the prior case with Binance. The error is solidly on the end of the service here.
    – Murch
    May 17 at 20:30
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    Note that we'll probably close this topic eventually either as a duplicate of the linked one, or because you didn't actually ask a question. But meanwhile I interpreted your post as a request for making some noise about this: twitter.com/murchandamus/status/1526668237529878528
    – Murch
    May 17 at 21:01
  • I am having a remotely similar dispute with an exchange, did you manage to solve this? Text me on twitter, maybe we can help each other: @pedr0fr
    – Pedro
    May 18 at 18:18

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