Crypto.com CEO addresses whereabouts of $1B in stablecoins sent to FTX

Share This Post

CEO Marszalek says the firm has recovered much of the funds and has less than $10M in exposure to FTX.

During a live ask-me-anything (AMA) session with users on Monday, Crypto.com CEO Kris Marszalek explained that the firm sent large-sum stablecoins to troubled cryptocurrency exchange FTX to fulfill liquidity within customers’ orders at the time when FTX was still functional. As told by Marszalek: 

“Over a year, $1B was moved to FTX and we recovered all of this. We only had exposure of under $10 million when FTX shut down. And FTX was a trading venue where this is one of the few trading venues with decent liquidity for some of the coins like the ones I mentioned earlier.”

During the session, Marszalek reassured users that the exchange was not halting withdrawals. Although, a higher volume of requests has led to a backlog of customer service tickets. The Crypto.com chief then stated that only three coins, two of which are FTX tokens and the other being a securitized token, currently have their withdrawal functions suspended on the exchange.

Marszalek also denied allegations that the exchange was using its native token, CRO, as collateral for loans: “We’ve never used it, and we haven’t needed to use it,” he said, pointing out that the exchange has a “very simple business that generates a fairly decent amount of revenue,” opting to focus on that direction instead.

Finally, in response to users questioning why approximately 20% of the exchange’s reserves are in memecoin Shiba Inu (SHIB), Marszalek explained that they were simply customer deposits:

“And it so happens that last year DOGE, and SHIB were two extremely hot meme coins. And people bought a lot. And they’re holding it; they didn’t sell it. We have no control over what you guys buy. You buy it; we will start it will keep it safe.”

Like many other exchanges, Crypto.com has seen a flurry of withdrawals in the aftermath of FTX’s collapse. The firm also became the target of wide-ranging conspiracy theories on Twitter after it was uncovered that the exchange accidentally sent 320,000 Ether (ETH) to Gate.io before recovering the funds shortly after. 

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Miners Sold Over 3,000 BTC In The Past 48 Hours – Consolidation Phase Ahead?

Bitcoin has maintained its bullish momentum over the weekend, solidifying its position above the $90,000 mark This milestone showcases Bitcoin’s resilience as it continues to captivate investors

Bybit Rallies to Support Flood-Stricken Communities in Spain: A Commitment to Recovery

Bybit has announced its commitment to assist communities affected by the catastrophic floods in Valencia and other regions of Spain, which have resulted in over 200 fatalities, thousands of displaced

Solana Breaks Above Key Resistance At $225 – ATH Next?

Solana (SOL) has captured the market’s attention after a series of volatile days, finally breaking above the $225 mark to reach new yearly highs Currently trading at $235, Solana sits just 10%

Bitcoin’s $90K Era: A Fleeting Moment or the Start of a New Chapter?

On Sunday, Nov 17, bitcoin is holding steady above $90,000, a figure that it has flirted with multiple times since Nov 12 The leading cryptocurrency, however, remains in the price discovery phase,

Spot Ethereum ETFs See $515 Million Record Weekly Inflows – Details

The US-based spot Ethereum ETFs have continued to experience a high market interest following Donald Trump’s emergence as the next US President As institutional investors continue to position

Bitcoin 2024: Ten Months in Review, Key Milestones, and Expert Predictions for Year-End

As of Nov 11, 2024, bitcoin (BTC), the undisputed crypto heavyweight, has enjoyed a phenomenal year Over the last ten months, it has been breaking records across the board From hashrates to daily