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.<\/p>\n
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.”<\/p>\n
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.<\/p>\n
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.<\/p>\n
Crypto.com will remain an official sponsor for the FIFA World Cup this year, according to the CEO.<\/p>\n
Marszalek’s assurances come after it emerged that the exchange accidentally sent a substantial portion of its Ether reserves to Asian exchange Gate.io.<\/p>\n
Crypto.com said it recovered the almost $400 million in Ether.<\/p>\n
The company was supposed to move 320,000 in Ether to a new cold storage address \u2014 a type of offline wallet \u2014 but the funds were sent instead “to a whitelisted external exchange address,” Marszalek said on Twitter<\/a><\/strong>.<\/p>\n 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<\/a><\/strong> by Marszalek on 11 November.<\/p>\n Similar to tweets posted following speculation that FTX was insolvent, Binance cofounder and CEO\u00a0Changpeng “CZ” Zhao warned his followers to “stay away”.<\/p>\n “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<\/a><\/strong>.<\/p>\n Binance is the largest cryptocurrency exchange in the world by trading volume.<\/p>\n 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the Gate.io address was a corporate account that belonged to them, and that the entirety of the Ether was “successfully withdrawn over the following days” after Gate.io increased its daily withdrawal limits.<\/p>\n