Crypto.com commits to proof-of-reserves after freezing some deposits and withdrawals

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The CEO of Crypto.com stated, “We agree with the opinion that it should be required for crypto platforms to publicly publish proof of reserves.

As a result of the failure of competing exchange FTX, Kris Marszalek, CEO of cryptocurrency exchange Crypto.com, has joined a growing list of cryptocurrency companies that have promised to release “audited proof of reserves.”

According to Marszalek, his company “will be posting our audited evidence of reserves,” adding that they “share the idea that it should be important for crypto platforms to publicly release proof of reserves.”

We both think that crypto platforms should be required to publicly disclose proof of reserves, and we’ll be sharing our audited proof of reserves at https://t.co/pFc4Pz9nFR.

— Kris | Crypto.com (@kris) November 10, 2022

After the FTX liquidity fiasco, the notion of crypto businesses publishing their Proof of Reserves has gained traction. On November 8, Binance CEO Changpeng “CZ” Zhao also promised to implement a Proof of Reserves audit system to inform the public about the status of their reserves.

The CEO of Crypto.com made these remarks just hours after the exchange on November 9 briefly stopped accepting deposits and withdrawals of USDC and USDT on the Solana network.

According to reports on Twitter, Crypto.com informed users of an “immediate suspension of UDSC and USDT Deposits and withdrawals on Solana” in an email sent to subscribers on Nov. 9.

The exchange told users in the email that they may withdraw USD Coin and Tether (USDT) at any moment using other supported networks, like Cronos and Ethereum, implying that these other specified networks had not been damaged by “recent industry events.”

The rumours making the rounds on social media concerning the suspension of withdrawals and deposits of USDC and USDT on the Solana network were accurate. “Any unreceived deposits of these two tokens over Solana will be reimbursed without a fee for the next two weeks,” the exchange stated.

They chose not to go into greater detail, though.

Due to the collapse of the cryptocurrency exchange FTX, the cryptocurrency markets have been in a frenzy for the past 96 hours.

After stopping some deposits and withdrawals, Crypto.com commits to proof-of-reserves.

On November 6, CZ disclosed plans to completely sell its holdings in FTX Token, the native token of rival exchange FTX, which sparked a bank run and caused the price of FTT to crash.

On October 8, the Binance CEO revealed that his company had “signed a non-binding Letter of Intent, intending to fully buy FTX.com and help cover the liquidity shortfall.” This was a surprising turn of events.

The CEO clarified that nothing was definite and they may “back out of the contract at any point” since they were “assessing the situation in real-time.”

The CEO declared they had completely backed out of the transaction less than 48 hours later.

The latest developments have had a cascading effect on the markets, especially those connected to FTX and its associated businesses.

The price of Solana dropped more than 40% as a result of its connection to Sam Bankman-Fried, the creator of the cryptocurrency hedge fund Alameda Research and the cryptocurrency exchange FTX, according to a Cointelegraph report from November 9 that Solana was on track to have its worst daily performance on record.

Anatoly Yakovenko, a co-founder of Solana Labs, tweeted throughout the time that the events were developing that Solana had not been impacted. He said, “We still have a lot of runways and fortunately still a small crew because Solana Labs, a US corporation, didn’t have any assets on ftx.com.”

Solana was down 30.29% over the previous 24 hours and was trading at roughly $14.97 at the time of publication.

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Mufasa
Mufasa
Mufasa is the lead writer at CryptoMufasa who likes to share all the latest info on the crypto world with you! Mufasa Enjoys enjoys a good read and recommendations so don't forget to comment on the posts and let him know.

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