The CEO of Singapore-based cryptocurrency exchange Crypto.com, Kris Marszalek, asserted that the company would disprove any claims that the platform is in jeopardy, that it has a strong balance sheet, and that it has taken no risks.
During a live Q&A session on YouTube on Monday, CEO Marszalek added that the site always kept reserves to match every currency users owned on its platform. In an effort to calm markets alarmed by the unexpected demise of rival FTX.com, Marszalek stated that withdrawals from the platform are effective and will continue to be effective.
During a live-streamed Q&A session on Monday, Marszalek reiterated that the firm had a “very healthy balance sheet” and less than $10 million of exposure to FTX. He stated that an audited proof of reserves report will be released soon and that the exchange did not use any “irresponsible lending products.”
Markets are now focused on the stability of other cryptocurrency exchanges, such as Crypto.com, in the wake of FTX’s bankruptcy filing late last week. According to CoinGecko statistics, the value of the company’s native CRO coin has dropped by 45% in the last week.
According to Marszalek, Crypto.com never used CRO as loan collateral. According to him, the corporation has 1-to-1 reserves coverage for all assets and liabilities and has almost 70 million consumers.
After a week of customers selling assets and Binance withdrawing a rescue offer, Sam Bankman-FTX Fried’s filed for bankruptcy on Friday. The Securities and Exchange Commission and the Department of Justice are looking into Bankman-Fried and his business. The focus of the inquiries is probably on the likelihood that the company broke US securities law by using client deposits to finance wagers at Bankman-hedge Fried’s fund, Alameda Research.
The collapse of FTX was a startling turnaround for Bankman-Fried. The 30-year-old founded FTX in 2019 and oversaw its growth to become one of the biggest cryptocurrency exchanges, building up a personal wealth believed to be worth close to $17 billion. FTX was valued at $32 billion in January by investors that included SoftBank and BlackRock.
The worst week for Bitcoin since June saw a 23% decline. According to the CoinGecko website, the total market value of all tokens has decreased by more than 70% from a record high of just under $3 trillion set a year ago, with a current value of $843 billion.
