Crypto.com Trimmed $1 Billion FTX Exposure to $10 Million

[forex4you]

Crypto.com Trimmed $1 Billion FTX Exposure to $10 Million

<p>The CEO of Crypto.com, Kris Marszalek, revealed in a live YouTube public interview that his exchange only has $10 million exposure to the collapsed rival, <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank">FTX</a>. Earlier this year, Crypto.com had about $1 billion on the doomed exchange.</p><p>"We recovered $990 million from FTX," Marszalek said in the ask-me-anything (AMA) session hosted on Crypto.com's official YouTube channel. "We only had an exposure of $10 million when FTX shut down."</p><p>He further highlighted that an audit of Crypto.com's books is ongoing, which will bring further transparency to the exchange's operations. However, the audit process might take some time as, according to Marszalek, audit firms "don't work at crypto speed."</p><p>In addition, he assured of the normal withdrawals on the <a href="https://www.financemagnates.com/terms/e/exchange/" target="_blank" id="b5da6e64-2afe-421d-9b81-16404b7d59d6_4" class="terms__secondary-term">exchange</a> but highlighted that three tokens, GALA, SRM, and Ray are affected. "SRM is closely tied to FTX," Crypto.com's CEO added.</p><p>A High Time for Transparency</p><p>The <a href="https://www.financemagnates.com/cryptocurrency/coinbase-narrows-q3-losses-despite-a-declining-transaction-revenue/" target="_blank">collapse of Sam Bankman-Fried's FTX </a>left a ripple effect on the entire cryptocurrency industry. The venture arm of several crypto giants invested in or provided loans to FTX. A majority also held FTX's native FTT tokens, the value of which is now almost close to zero.</p><p>On top of that, the collapse of FTX prompted crypto companies to disclose their exposure to FTX. <a href="https://www.financemagnates.com/cryptocurrency/coinbase-narrows-q3-losses-despite-a-declining-transaction-revenue/" target="_blank">Coinbase</a> was among the first to disclose $15 million worth of deposits on FTX "to facilitate business operations and client trades." Kraken also confirmed holding around 9,000 FTT tokens on FTX.</p><p>Crypto.com is among the big global crypto exchange brands. During last year's peak, the exchange processed about $4 billion worth of crypto transactions daily. However, that figure dropped to around $284 million last October. The value of its native CRO token also dropped by 45 percent last week, with speculations of it being the next to face <a href="https://www.financemagnates.com/terms/l/liquidity/" target="_blank" id="47c3bef3-27ee-4953-8504-159e1b829b33_1" class="terms__main-term">liquidity</a>.</p><p>Moreover, Marszalek assured that <a href="https://www.financemagnates.com/cryptocurrency/cryptocom-releases-cold-wallet-addresses-of-select-largest-assets/" target="_blank">Crypto.com</a> never used CRO tokens as loan collateral, which is one of the primary reasons behind the collapse of FTX.com and Alameda Research. The majority of Alameda's assets were held in FTT, the crypto token issued by its sister company, FTX.</p><p>Recently, in a transaction mishap, Crypto.com sent $400 million worth of Ether to rival Gate.io. According to Marszalek, that Gate.io account was Crypto.com's corporate account, and the funds have now been returned.</p><p>"The funds were at no risk of being lost," Marszalek said, adding that "the system would not allow us to send money somewhere it can't be recovered."</p>

This article was written by Arnab Shome at www.financemagnates.com.

Source: Crypto.com Trimmed $1 Billion FTX Exposure to $10 Million