Crypto.com CEO addresses whereabouts of $1B in stablecoins sent to FTX
Throughout a dwell ask-me-anything (AMA) session with customers on Nov. 14, Crypto.com CEO Kris Marszalek defined that the agency despatched large-sum stablecoins to distressed cryptocurrency alternate FTX to meet liquidity inside prospects’ orders on the time when FTX was nonetheless practical. As advised by Marszalek:
“Over a 12 months, $1 billion was moved to FTX, and we recovered all of this. We solely had publicity of beneath $10 million when FTX shut down. And FTX was a buying and selling venue the place — this is among the few buying and selling venues with first rate liquidity for a number of the cash, like those I discussed earlier.”
Through the session, Marszalek reassured customers that the alternate was not halting withdrawals. Though, a better quantity of requests has led to a backlog of customer support tickets. The Crypto.com chief then acknowledged that solely three cash, two of that are FTX tokens and the opposite being a securitized token, at the moment have their withdrawal capabilities suspended on the alternate.
Marszalek additionally denied allegations that the alternate was utilizing its native token, Cronos (CRO), as collateral for loans: “We’ve by no means used it. We haven’t wanted to make use of it,” he mentioned, mentioning that the alternate has a “quite simple enterprise that generates a reasonably first rate quantity of income,” opting to give attention to that route as a substitute.
Lastly, in response to customers questioning why roughly 20% of the alternate’s reserves are in memecoin Shiba Inu (SHIB), Marszalek defined that they have been merely buyer deposits:
“It so occurs that final 12 months, DOGE and SHIB have been two extraordinarily sizzling memecoins, and other people purchased rather a lot. They usually’re holding it, they didn’t promote it. We have now no management over what you guys purchase. You purchase it, we’ll retailer it — we’ll preserve it secure.”
Like many different exchanges, Crypto.com has seen a flurry of withdrawals within the aftermath of FTX’s collapse. The agency additionally turned the goal of wide-ranging conspiracy theories on Twitter after it was uncovered that the alternate by accident despatched 320,000 Ether (ETH) to Gate.io earlier than recovering the funds shortly after.
