Another major cryptocurrency exchange that attracted attention for its extravagant spending during the previous year’s bull market is in difficulty as users question the state of its finances and draw the unavoidable comparison to the recently collapsed FTX exchange.
However, Crypto.com CEO Kris Marszalek urges not to worry because everything is legal and sincere.
In an AMA on Twitter on Sunday, Marszalek stated that “business as usual” was being conducted on his platform. People are making deposits, withdrawals, and trades, which is essentially standard activity but at a higher volume.
Marszalek said it wasn’t a major concern and that the money was transferred to Crypto.com’s own company account on Gate.io.
“The funds were at no risk of being lost. The system would not allow us to send money somewhere it can’t be recovered.” – he said.
According to him, Crypto.com keeps clients’ assets one-to-one with the applicable tokens or fiat and nothing else in contrast to FTX, which traded user funds and used its own extremely volatile token as collateral for their deposits.
He said that combining consumer and business funds is a “bad notion” and that it ought to be “banned,” saying, “We do not trade consumers’ assets.”
He claimed that the exchange was only down by $10 million while recovering the majority of its $1 billion investment.