Skip to main content

Crypto.com’s Exposure to FTX Less Than $10 Million Says CEO — CRO Token Not Used as Collateral

According to the CEO of Crypto.com, Kris Marszalek, his firm had recovered much of the $1 billion that had been sent to FTX when the crypto exchange collapsed. However, he acknowledged that at the time of FTX’s collapse, Crypto.com’s exposure to the crypto platform was below $10 million. Marszalek also claimed that Crypto.com has never used its crypto token as collateral.

Crypto.com’s Business Model

Kris Marszalek, the co-founder and CEO of Crypto.com, recently told his followers that when FTX collapsed, much of the $1 billion that was sent to the now-defunct exchange platform had been recovered. According to the CEO, Crypto.com’s exposure to FTX was under $10 million when the latter was forced to file for bankruptcy.

Responding to speculation that Crypto.com may be the next crypto exchange to face an FTX-style user exodus, Marszalek insisted on Nov. 14 that it has been business as usual at his firm. Speaking during an ask me anything (AMA) session arranged by the crypto exchange, Marszalek also reiterated that his firm’s primary focus is serving its 70 million plus clients who largely buy and hold crypto assets.

The Crypto.com boss also claimed that his firm’s business model is different from the one used by FTX.

Surging Transactions and Withdrawal Pause Rumors

As reported by Bitcoin.com News, FTX’s apparent practice of misappropriating customers’ funds eventually led to its downfall. Following FTX’s demise, rumors emerged suggesting Crypto.com, which recently admitted to sending digital assets worth over $400 million to Gate.io by mistake, might be the next crypto exchange to fall.

In addition, the recent surge in the number of transactions as well as reports alleging that Crypto.com had paused withdrawals seemed to lend credence to the rumors. However, in his response to reports suggesting the exchange had stopped withdrawals, Marszalek said:

This is absolutely not true, we are operating as usual. There is a heightened level of trading activity which means higher trading volumes which mean more revenues for us.

While Marszalek admitted that the exchange is grappling with a backlog of customer service tickets, he nonetheless emphasized that steps to rectify the situation were being taken. Concerning the alleged use of Crypto.com’s token CRO as collateral, the CEO said:

We have never used CRO as collateral for a single loan in our history. Not even once.

Marszalek added that Crypto.com is already running a simple business that generates decent revenues and therefore has no interest in using its token to generate more income.

What are your thoughts on this story? Let us know what you think in the comments section below.



from Bitcoin News https://ift.tt/17rslBR
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more

2021 Bitcoin Price Predictions: Analysts Forecast BTC Values Will Range Between Zero to $600K

As bitcoin has touched new price highs on Thursday nearing the $50k handle, people have been curious as to where the price will go in the future. Meanwhile, despite the gains so far, a number of luminaries, analysts, executives, and proponents from the crypto space believe the leading crypto asset will reach between $60k to six-digits this year. Mike Novogratz Predicts $100K Bitcoin: ‘Other CFOs and CEOs Are Saying, What Should We Be Doing?’ Satoshi Nakamoto’s invention has gained mass appeal in recent times as the leading digital asset bitcoin ( BTC ) has reached its highest value ever in 2021. On Thursday morning (EST), BTC spiked to an all-time high (ATH) at $48,697 per unit. Earlier in the morning at around 2 a.m., bitcoin was exchanging hands for $44,485 and saw an 8.98% increase since then. At the time of publication, at 6:30 p.m. (EST) on February 11, 2021, bitcoin (BTC) is swapping for $47,821 per coin. With BTC so close to the $50k mark, people have been forecasting ...
Post a Comment
Read more