Users rush out funds after rumors of Crypto.com bankruptcy resurfaces

Rumors of Crypto.com being close to bankruptcy surround Twitter, despite the team’s denial, after FTX’s downfall. Now, users are rushing to take out their funds from the exchange.

The era of centralized exchanges might be coming to an end. The firms are slowly hinting at insolvency as rumors surround them. Crypto.com is one of these exchanges.

Ever since FTX’s downfall, the trust in centralized exchanges has lifted and many trading platforms are under fire for hiding their financial statements.

FTX was directly involved with many exchanges and had a lot of subsidiaries under it, which have been deeply affected by the firm’s insolvency over the past week.

However, Crypto.com CEO Kris claims their direct involvement with FTX is “immaterial,” “less than $10m in our own capital deposited there for customer trade execution,” he added.

The firm came under the radar again when user @jconorgrogan reported that the firm transferred 82% of its ETH to Gate.io but Kris said it was an accident and the amount was sent back but lesser.

However, the exchange recently halted its operations due to insufficient funds for ETH gas fees. This caused the rumors of insolvency to circulate even more rapidly.

Crypto.com also sent $1B worth of stablecoins to FTX exchange over the year, what’s the reason behind this transfer when the team claims to be not involved with FTX directly?

As a result, experts are warning that there might be a financial hole in the firm, so almost 90,000 unique transactions have been made as people take out their funds to prevent any financial loss.

Since people are massively pulling out funds from the exchange, Crypto.com’s native token $CRO is down by 19%, based on CoinMarketCap in the last 24 hours.

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