In response to the rumors that have been dragging on for a few days, Kris Marszalek, CEO of Crypto.com, spoke to reassure investors. He claims that an audit of Crypto.com’s reserves is underway to prove the transparency and good health of the exchange.
Crypto.com finally safe?
Kris Marszalek, CEO of Crypto.comwanted to clarify the situation in the face of rumors evoking a liquidity crisis within the cryptocurrency exchange following the FTX affair.
Indeed, rumors from the hallway let it be known that Crypto.com Was Exposed to Over $1 Billion in Stablecoins on FTX at the time of its collapse. In a direct given on YouTube, Kris Marszalek affirms that this billion dollars was indeed transferred to FTX, but over a period of 12 months.
🔴 LIVE – Follow the FTX deal in real time
Moreover, according to him, when FTX decided to halt withdrawals, Crypto.com was only exposed to it by $10 million. He adds that FTX actually received some of its clients’ orders, as the platform was one of the only ones with substantial liquidity for certain cryptocurrencies. ” These are the facts, and everything else is just FUD “, he specifies.
It also claims that Crypto.com has never used its own token (the CRO) as collateralunlike FTX and its FTT, which incidentally is the main cause of its recent collapse.
And on top of that, we recently learned that Crypto.com mistakenly sent $400 million in the form of Ether (ETH) to the Gate.io exchange, news that didn’t help restore the investor confidence in centralized exchanges. According to the CEO of Crypto.com, the funds have never been in danger although there was indeed an error, in that destination addresses must be whitelisted and approved:
“The funds were not in danger of being lost. The system didn’t allow us to send money somewhere it couldn’t be picked up. »
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Soon an external audit for the platform
In order to demonstrate transparency at a time when investor confidence in cryptocurrencies is at an all-time low, Crypto.com has published the different addresses of its cold wallets containing Bitcoin (BTC), ETH or other ERC-20 tokens.
The addresses in question show 53,024 BTC and 391,564 ETH, for a total of approximately 3 billion dollars combined with other cryptocurrencies held by Crypto.com.
According to the statement on the transparency of the company’s reserves, the latter ensures that an audit of its cash flow has been undertaken with an external firm in order to release proof of reserves in the coming weeks. In the statement, Crypto.com encourages other exchanges to do the same, echoing Changpeng Zhao, CEO of Binancewho had issued the same advice.
This afternoon, the site’s withdrawal capacities were slightly impacted by a large number of simultaneous withdrawals. However, around 6 p.m. Kris Marszalek announced via Twitter that withdrawals were working normally.
👉 In The News – FTX: About $400 million worth of FTT tokens added to circulating supply
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Source: Crypto.com
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Maximilien Prue
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