Crypto.com has a strong balance sheet, says the CEO

Crypto.com has assured its customers that it is conducting business as usual after reports emerged that the company mistakenly sent $400 million worth of ether to Gate.io last month.

The CEO of Crypto.com, Kris Marszalek, revealed in an Ask Me Anything (AMA) session yesterday that the cryptocurrency exchange is in good standing.

The crypto exchange had come under fire after reports emerged that it had mistakenly sent $400 million worth of ether to Gate.io, another cryptocurrency exchange, last month. 

In his AMA session, Marszalek said Crypto.com has a tremendously strong balance sheet. He said;

“Our platform is performing business as usual. People are depositing, people are withdrawing, people are trading, there’s pretty much normal activity just at a heightened level.”

Cryptocurrency exchange FTX filed for bankruptcy last week after it was revealed that the company was misappropriating customer funds. Crypto.com’s CEO said his cryptocurrency exchange doesn’t involve itself with illegal lending. He said;

“We never engage as a company in any irresponsible lending practices, we never took any third-party risks. We do not run a hedge fund, we do not trade customers’ assets. We always had 1-to-1 reserves.”

Crypto.com mistakenly sent $400 million worth of ETH to Gate.io last month. Marszalek explained that;

“In this particular case, the whitelisted address belonged to one of our corporate accounts in a 3rd party exchange instead of our cold wallet. We have since strengthened our process and systems to better manage these internal transfers.”

It was reported that FTX was secretly trading cryptocurrencies with customer funds. Marszalek assured customers that Crypto.com doesn’t trade with their assets. He added that;

“We will just continue with our business as usual, and we will prove all the naysayers – and there are many of these right now on Twitter in the last couple of days – we’ll prove them all wrong with our actions. We’ll continue operating as we have always operated to continue being a safe and secure place where everybody can access crypto.”

His comments come a few days after Crypto.com announced that it had halted deposits and withdrawals of USDT and USDC stablecoins on the Solana network.