CEO addresses insolvency rumors, admits to $10M exposure

In a recent YouTube live, CEO Kris Marszalek said that the platform’s balance sheet is financially strong. He also shared that the exposure from FTX’s downfall is below $10M.

Previously, a lot of Twitter accounts and investigators alleged to be at risk of insolvency despite the team’s constant denial since day 1 of FTX’s downfall.

During the Livestream, Kris shared “We recovered $990 million from FTX,” and lost around $10M in the exchange’s bankruptcy and also shared that is doing an audit.

“ had about $1 billion in cumulative transactions with FTX over the last year but current exposure was less than $10 million,” he said.

Although the audit will take time to be released since it’s still underway, it can determine the financial credibility of the exchange to users who are currently pulling out their funds from the platform.

Regarding the position of its native token CRO, CEO Kris shared that they have never used it as a loan collateral, so it won’t collapse like FTX’s FTT token did.

Regarding the “accidental” transaction made with, he explained that the addresses are whitelisted and the less amount was only transferred back because of Gate’s daily transfer limit.

“The system would not allow us to send money somewhere it can’t be recovered,” Kris said.

On the question of how is different from FTX, he said that that platform is built on a brokerage model to give zero market risks to the users, it’s more focused on the retail industry.

“Mixing up hedge funds, business, together with an exchange is a terrible idea. It should be outlawed,” Kris said. “We like our business to be simple.”

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