CEO Kris Marszalek: CryptoCom is financial Strong Amid FTX crisis

CEO Kris represents the company’s balance sheet to be strong.
CryptoCom to disclose audited proof of reserves within upcoming weeks.
$10 million funds exposed to FTX, $990 million recovered.

No Decline in Financials

Despite the downturns led by the FTX crash, CEO of Cryptocom, Kris Marszalek shares that the company’s balance sheet is optimal and does not possess any risk to customers.

Singapore-based payment, trading and financial services company has a total of 50 million users with over 4,000 employees. It was founded in 2016. In a Live ‘AMA’ between CMO Steven Kalifowitz and CEO Kris discussed a lot of reasonable topics regarding firms operations and status.

The CEO Kris says in “Ask me anything”- “We never engage as a company in any irresponsible lending practices, we never took any third-party risks”. Also, he promised to reveal an audited proof of reserves within the next 30 days. The objective of the audit was to confirm that each coin on the platform matches with the reserves.

On 11 November, he tweeted- “While the Proof of Reserves audit preparation is underway, we are sharing our cold wallet addresses for some of the top assets on our platform. This represents only a portion of our reserves: about 53,024 BTC, 391,564 ETH, and combined with other assets for a total of ~US$ 3.0b”.

‘All Clear’ in Business

The Luna Terra crash followed by the crypto winter led to the ‘bank run’ position of crypto hedge fund Three Arrow Capital, Voyager Digitals and Celsius Network. As reported by CNBC, Marszalek said that the platform has “tremendously strong balance sheet” and were not involved in any kind of practices that mocked SBF’s crypto exchange FTX previous week.

As per the sources, last month, it was found that CryptoCom unintentionally sent $400 million to Gate.io, another crypto exchange. But then the “operational error transfer” mistake was undone as soon as it was detected. Kris said that- “Our platform is performing business as usual,” he added. “People are depositing, people are withdrawing, people are trading, there’s pretty much normal activity just at a heightened level.”

But he does not deny the fact that the firm has exposure of almost $10 million of funds and disclosed that $990 million funds are recovered. Marszalek told investors that Cronos (CRO) are never utilized in order to be provided as collateral for loans, unlike in SBF’s case of offering FTT tokens.

Few hours ago, he tweeted on Twitter- “The withdrawal queue is down 98% within the last 24 hours. It remains business as usual at Crypto.com. Kudos to our team who built resilient blockchain infrastructure — operating normally under load. Onwards!”

At the time of writing, CRO is trading at 8.67% high on $0.07448 with a trading volume of $189.78 million in the last 24 hours.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing