SINGAPORE, Nov 14 (Reuters) – The chief executive of Singapore-based Crypto.com has said the company will prove all naysayers wrong on the struggling platform, and that it has a strong balance sheet and no took no risks.
Managing Director Kris Marszalek answered questions in a YouTube Live address and also said the platform still maintains reserves to match all coin clients held on its platform.
“We’ll just continue with business as usual and prove all naysayers and there’s (sic) a lot of that right now on Twitter over the past two days,” Marszalek said.
“We will prove them all wrong with our actions. We will continue to operate as we always have. We will continue to be the safe and secure place where everyone can access crypto.”
A verified report on proof of reserves will be released in a few weeks, he said, and that the exchange has not engaged in any “irresponsible lending products”.
The ‘AMA’ (ask me anything) came after investors took to Twitter over the weekend to question a $400 million transfer of ether tokens to another exchange called Gate.io on October 21.
Marszalek had tweeted to say the ether had been recovered and returned to the exchange, but that failed to calm a jittery market. The Wall Street Journal reported that withdrawals on Crypto.com increased over the weekend after Marszalek’s tweet.
“At no time were the funds in danger of being sent somewhere we couldn’t get them back. It happened over three weeks ago. It had nothing to do with the madness that was going on. has been produced since the collapse of FTX,” the CEO said. in response to questions, which approximately 7,000 people watched live.
The cryptocurrency market is already on edge with the dramatic public collapse of FTX last week. FTX had gone from being one of the largest exchanges in the world to filing for bankruptcy. A Reuters report found that at least $1 billion in customer funds were missing from FTX.
“It set the industry back a few years in the reputation we’ve built,” Marszalek said. “Trust has been damaged, if not lost, and we need to focus on rebuilding trust.”
The Ether move on Crypto.com was uncovered by a user digging through transactions after the company posted its cold wallet addresses online.
Crypto.com is among the top 10 exchanges by revenue globally, but smaller than FTX and market leader Binance. He made headlines in 2021 after signing a $700 million deal to rename the Staples Center in Los Angeles to the Crypto.com Arena, and hiring actor Matt Damon to promote the platform.
Marszalek said Crypto.com had 70 million individual customers worldwide and made $1 billion in revenue in 2021 as well as 2022.
The platform had transferred about $1 billion to FTX over a year, but most of it was recovered and exposure at the time of FTX’s collapse was less than $10 million, he said. .
Asked why the exchange had 20% of its reserves in the Shiba Inu (SHIB) meme token, Marszalek said it was because reserves were a direct reflection of client holdings and SHIB and Dogecoin had been extremely popular in 2021.
(This story has been edited to correct paragraph 14 to clarify that the FTX Expo ran for over a year, not earlier this year)
Reporting by Ankur Banerjee and Vidya Ranganathan; additional reporting by Xinghui Kok; Editing by Jacqueline Wong and Simon Cameron-Moore
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