According to the CEO of Crypto.com, Kris Marszalek, his firm had recovered much of the $1 billion that had been sent to FTX when the crypto exchange collapsed. However, he acknowledged that at the time of FTX’s collapse, Crypto.com’s exposure to the crypto platform was below $10 million. Marszalek also claimed that Crypto.com has never used its crypto token as collateral.
Business model of Crypto.com
Chris Marszalek, co-founder and CEO of Crypto.com, recently told his followers that most of the $1 billion that was sent to the now-defunct exchange platform was recovered when FTX collapsed. According to the CEO, Crypto.com’s exposure to FTX was less than $10 million when the latter was forced to file for bankruptcy.
Responding to speculation that Crypto.com may be the next crypto exchange to face an FTX-style user exodus, Marszalek insisted on Nov. 14 that it has been business as usual at his firm. Speaking during an ask me anything (AMA) session arranged by the crypto exchange, Marszalek also reiterated that his firm’s primary focus is serving its 70 million plus clients who largely buy and hold crypto assets.
The Crypto.com boss also claimed that his firm’s business model is different from the one used by FTX.
Surging Transactions and Withdrawal Pause Rumors
As reported by Bitcoin.com News, FTX’s apparent practice of misappropriating customers’ funds eventually led to its downfall. Following FTX’s demise, rumors emerged suggesting Crypto.com, which recently admitted to sending digital assets worth over $400 million to Gate.io by mistake, might be the next crypto exchange to fall.
In addition to surge The number of transactions, as well as reports alleging that Crypto.com had blocked withdrawals, lend credence to the rumours. However, in response to reports suggesting that the exchange had stopped withdrawals, Marszelek said:
This is absolutely not true, we are operating as usual. There is a heightened level of trading activity which means higher trading volumes which mean more revenues for us.
While Marszalek acknowledged that the exchange is struggling with a backlog of customer service tickets, he stressed that steps are being taken to improve the situation. Regarding the alleged use of Crypto.com’s token CRO as collateral, the CEO said:
We have never used CRO as collateral for a single loan in our history. Not even once.
Marszalek said that Crypto.com is already running a simple business that generates decent revenue and therefore has no interest in using its token to generate more income.
