"Over a year, $1 billion was moved to FTX, and we recovered all of this," said Crypto.com CEO Kris Marszalek regarding the large stablecoin transaction.
Crypto exchange Crypto.com CEO Kris Marszalek used a live ask-me-anything (AMA) session to address various issues worrying the crypto community.
One of the first things asked by the crypto community concerned the large stablecoin transaction Crypto.com made to the now-bankrupt crypto exchange FTX. During the AMA, Marszalek noted that the transaction was made over a year ago to eliminate liquidity in customer orders.
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Over a year, $1 billion was moved to FTX, and we recovered all of this. We only had exposure of under $10 million when FTX shut down. And FTX was a trading venue where — this is one of the few trading venues with decent liquidity for some of the coins, like the ones I mentioned earlier.
Moreover, Marszalek reassured Crypto.com customers that the company is not suspending withdrawals. The CEO highlighted that withdrawals are halted for only three coins, including those of FTX and one securitized token.
On top of that, when asked why around 20% of Crypto.com reserves consist of Shiba Inu tokens, Marszalek noted:
It so happens that last year, DOGE and SHIB were two extremely hot meme coins, and people bought a lot. And they’re holding it, they didn’t sell it. We have no control over what you guys buy. You buy it, we will store it — we will keep it safe.
Lastly, Crypto.com CEO emphasized that the crypto exchange wasn’t using their native token, Cronos (CRO), as collateral for loans. The man highlighted that Crypto.com is a simple business that generates “a fairly decent amount of revenue” without the need to use CRO as collateral.
In other news, the news recently broke that Crypto.com sent 320,000 ETH (worth around $403 million) to Gate.io. The company’s CEO, Kris Marszalek, claimed that the transfer was accidental, and since then, Gate.io has returned all the funds.
