The collapse of crypto exchange FTX is having ramifications across the crypto industry. Last week, crypto lender BlockFi paused withdrawals due to the “lack of clarity” surrounding “the status of FTX.com, FTX US, and Alameda.” That “lack of clarity” is something investors of other exchanges are now worried about.
With that in mind, Kris Marszalek, the CEO of the popular crypto exchange Crypto.com, gave a live Q&A on the company’s YouTube channel trying to reassure investors its balance sheet was strong and that it had limited exposure to FTX. As CoinDesk notes, Marszalek revealed Crypto.com “recovered $990 million from FTX,” leaving it with an exposure of just $10 million.
Marszalek further said that Crypto.com withdrawals were uninterrupted, except for those related to GALA, SRM, and Ray. And addressing concerns about Crypto.com’s own coin, Cronos (CRO), Marszalek told investors that CRO has never been used as collateral for loans, unlike FTX’s token, FTT.
That news appears to have helped send CRO’s price up this morning. As of the time of this writing, CRO is up 8.6% to just under $0.07 per token. However, CRO’s price is a long way from its 2022 high, which saw the token trading at above $0.48.
As for what Crypto.com is doing to further reassure investors, Marszalek says an audit of the company is underway but warned that audit firms “don’t work at crypto speed,” suggesting that the completion of the audit will take some time.
You can check out the full AMA with Crypto.com’s Marszalek below.
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