Crypto.Com Recovered $990 Million from FTX, CEO Says Balance Sheet Strong

Singapore-based crypto exchange Crypto.com’s chief executive said the firm will prove all naysayers wrong on the platform being in trouble, and that it has a robust balance sheet and took no risks. Chief executive Kris Marszalek took questions in a livestreaming YouTube address, and also said the platform always maintained reserves to match every coin customer held on its platform.  It’s exposure to failed cryptocurrency exchange FTX is minimal and its balance sheet remains robust, Kris Marszalek, the Singapore-based crypto exchange’s CEO, said during a recent interview. Specifically, Marszalek said his company’s FTX exposure was limited to $10M after recovering $990M from the latter at an earlier date.  Over the past week, Crypto.com’s CRO token has dropped almost 45% on concerns the Singapore-based exchange will be the next to face a liquidity crisis. The exchange’s daily volume has collapsed from last year’s highs of around $4 billion to about $284 million this past October, according to data from Nomics, and withdrawals are on their way back up as users and investors remove their funds from the platform.  In the interview, Marszalek reiterated that the exchange has a strong balance sheet and said its exposure to FTX was limited to $10 million.  “We recovered $990 million from FTX,” Marszalek said, pointing out that fund flows between exchanges are a necessary part of the business.  An audit of Crypto.com is underway, but it will take some time. Audit firms “don’t work at crypto speed,” he said, emphasizing that Crypto.com and the industry both need full transparency to move forward.