Crypto.com assures withdrawals will keep working

Crypto.com Chief Executive Officer Kris Marszalek said withdrawals from the platform are working and will continue to work, moving to reassure markets unnerved by the sudden collapse of rival FTX.com.

Marszalek, speaking Monday in a livestreamed Q&A session, repeated that the company has less than $10 million of exposure to FTX and a “very strong balance sheet.”

After FTX filed for bankruptcy late last week, markets have turned their attention to the health of other crypto exchanges like Crypto.com. The company’s native CRO token has slumped 45% in the past week, data from CoinGecko show.

Crypto.com never uses CRO as collateral for loans, Marszalek said. The company, with some 70 million users, has 1-to-1 reserves coverage for all assets and liabilities, he added.

Crypto.com will remain an official sponsor for the FIFA World Cup this year, according to the CEO.

Marszalek’s assurances come after it emerged that the exchange accidentally sent a substantial portion of its Ether reserves to Asian exchange Gate.io.

Crypto.com said it recovered the almost $400 million in Ether.

The company was supposed to move 320,000 in Ether to a new cold storage address — a type of offline wallet — but the funds were sent instead “to a whitelisted external exchange address,” Marszalek said on Twitter.

Crypto.com’s initial 21 October transfer represented more than 80% of the exchange’s total Ether holdings, according to a partial proof of reserves provided by Marszalek on 11 November.

Similar to tweets posted following speculation that FTX was insolvent, Binance cofounder and CEO Changpeng “CZ” Zhao warned his followers to “stay away”.

“If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away. Stay #SAFU,” Zhao said.

Binance is the largest cryptocurrency exchange in the world by trading volume.

A Crypto.com spokesperson said the Gate.io address was a corporate account that belonged to them, and that the entirety of the Ether was “successfully withdrawn over the following days” after Gate.io increased its daily withdrawal limits.

Crypto.com launched a rand-denominated wallet for the South African market in July to comply with requests from local regulators.

“We have partnered with a local bank to compliantly offer certain products and services that are in line with local regulations, applicable law, and customer demand,” a spokesperson told MyBroadband.


Reporting with Bloomberg.

Now read: Crypto.com expands to South Africa with rand wallet

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Crypto.com assures withdrawals will keep working