Crypto.com CEO addresses whereabouts of $1B in stablecoins sent to FTX
During a live ask-me-anything (AMA) session with users on Monday, Crypto.com CEO Kris Marszalek explained that the firm sent large-sum stablecoins to troubled cryptocurrency exchange FTX to fulfill liquidity within customers' orders at the time when FTX was still functional. As told by Marszalek:
During the session, Marszalek reassured users that the exchange was not halting withdrawals. Although, a higher volume of requests has led to a backlog of customer service tickets. The Crypto.com chief then stated that only three coins, two of which are FTX tokens and the other being a securitized token, currently have their withdrawal functions suspended on the exchange.
Marszalek also denied allegations that the exchange was using its native token, CRO, as collateral for loans: "We've never used it, and we haven't needed to use it," he said, pointing out that the exchange has a "very simple business that generates a fairly decent amount of revenue," opting to focus on that direction instead.
Finally, in response to users questioning why approximately 20% of the exchange's reserves are in memecoin Shiba Inu (SHIB), Marszalek explained that they were simply customer deposits:
Like many other exchanges, Crypto.com has seen a flurry of withdrawals in the aftermath of FTX's collapse. The firm also became the target of wide-ranging conspiracy theories on Twitter after it was uncovered that the exchange accidentally sent 320,000 Ether (ETH) to Gate.io before recovering the funds shortly after.
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