Crypto.com CEO Denies Crisis Rumors, Claims Strong Balance Sheet

The demise of FTX has unleashed a damaging tsunami on crypto, inflicting severe collateral damage, and other exchanges have sought to reassure apprehensive investors of their own soundness. The CEO of Crypto.com, Kris Marszalek, disputed that the exchange is in jeopardy and reaffirmed that it has a robust balance sheet.

Before diving into this piece, you may want to catch up on some relevant stories, like how BlockFi suspended withdrawals after the FTX disaster and how the FTX and Alameda collapse caused another pause, this time on BlockFi.

During a live-streamed YouTube talk, the CEO answered queries, noting that the firm always retained reserves to match every coin users owned on its platform.

The AMA (ask-me-anything) session occurred after investors raised concerns on Twitter over the weekend about a transfer of 320 ETH tokens to the Gate.io exchange on October 21.

At no point were the funds at risk of being sent somewhere where we could not get it back. It happened over three weeks ago. It had nothing to do with any of the craziness that has been happening since FTX collapsed.

Marszalek indicated that the exchange's reserve report will be examined and that the exchange did not participate in any risky lending products.

In contrast to the connection between FTX and Alameda and FTX's token, FTT, he also indicated that withdrawals are operating as intended and that the exchange's token (CRO) has never been utilized as loan collateral. Its exposure to FTX, according to him, was limited to $10 million. Marszalek said that they retrieved $990 million from FTX.

Due to a liquidity issue and FUD regarding the exchange, Crypto.com's CRO token has declined approximately 45% in the previous week.

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