Throughout a stay ask-me-anything (AMA) session with customers on Monday, Crypto.com CEO Kris Marszalek defined that the agency despatched large-sum stablecoins to distressed cryptocurrency change FTX to meet liquidity inside prospects’ orders on the time when FTX was nonetheless practical. As informed by Marszalek:
“Over a 12 months, $1B was moved to FTX and we recovered all of this. We solely had publicity of underneath $10 million when FTX shut down. And FTX was a buying and selling venue the place this is likely one of the few buying and selling venues with respectable liquidity for a few of the cash like those I discussed earlier.”
Through the session, Marszalek reassured customers that the change was not halting withdrawals. Though, a better quantity of requests has led to a backlog of customer support tickets. The Crypto.com chief then said that solely three cash, two of that are FTX tokens and the opposite being a securitized token, at present have their withdrawal features suspended on the change.
Marszalek additionally denied allegations that the change was utilizing its native token, CRO, as collateral for loans: “We have by no means used it, and we’ve not wanted to make use of it,” he mentioned, mentioning that the change has a “quite simple enterprise that generates a reasonably respectable quantity of income,” opting to give attention to that course as a substitute.
Lastly, in response to customers questioning why roughly 20% of the change’s reserves are in memecoin Shiba Inu (SHIB), Marszalek defined that they had been merely buyer deposits:
“And it so occurs that final 12 months DOGE, and SHIB had been two extraordinarily scorching meme cash. And other people purchased so much. They usually’re holding it; they did not promote it. Now we have no management over what you guys purchase. You purchase it; we’ll begin it’s going to maintain it secure.”
Like many different exchanges, Crypto.com has seen a flurry of withdrawals within the aftermath of FTX’s collapse. The agency additionally grew to become the goal of wide-ranging conspiracy theories on Twitter after it was uncovered that the change by chance despatched 320,000 Ether (ETH) to Gate.io earlier than recovering the funds shortly after.
