Crypto.com boss Kris Marszalek has given an Ask Me Anything (AMA) address on YouTube in which he shared his thoughts on the bankruptcy of FTX.
Answering questions directly related to the downfall of Sam Bankman-Fried’s company, Marszalek assured that Crypto.com had a “tremendously strong balance sheet”.
He tried to distance his company from FTX, which had $1bn in liquidity and $9bn in liabilities, a shocking amount by all standards.
Analysts referred to FTX’s accounts as having “a black hole” when it was first discovered as part of a due diligence review, while Binance was considering a rescue buy-out.
Marszalek said Crypto.com’s metrics remained largely unchanged. People were depositing, withdrawing, and trading, but a recent report showed that Crypto.com’s trading volumes are hitting a bottom themselves.
This is not directly linked to any particular mistrust of Crypto.com specifically, but rather a general fear of the crypto market.
FTX’s collapse began with evidence that Bankman-Fried had used consumer funds to back his own crypto trading company, Alameda Research, which Binance described as “the ultimate sin”.
Marszalek had something to say about that. “We never engage as a company in any irresponsible lending practices, we never took any third-party risks”, the CEO said confidently.
Crypto.com has faced some challenges of its own. The exchange mistakenly sent $400m to Gate.io, another crypto exchange, but luckily the funds were restored.
Evidence surfaced that Crypto.com is also been keeping 20% of its reserves in Shiba Inu (SHIB), which is a “meme token” and therefore is supposedly has very low actual worth or long-term outlook.
Regardless, Marszalek assured people that the company would continue to operate as it always has – making sure that it offers a safe place for people to access crypto.