Crypto.com Commits to Providing Proof of Reserves After Halting Certain Deposits and Withdrawals

Crypto.com Commits to Providing Proof of Reserves After Halting Certain Deposits and Withdrawals

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Kris Marszalek, CEO of cryptocurrency exchange Crypto.com has become the latest crypto firm to promise to release “audited proof of reserves”, amid the fall of rival exchange FTX.

“We share the belief that it should be necessary for crypto platforms to publicly share proof of reservations,” Marszalek said, adding that his company “will release our verified proof of reservations.”

The idea for crypto firms to publish their proof of reserves gained traction following the FTX liquidity fiasco. On Nov. 8, Binance CEO Changpeng “CZ” Zhao also pledged to launch a proof of reserves audit system to give the public insight into the status of their reserves.

The Crypto.com CEO’s comments come just hours after the exchange temporarily suspended USDC and USDT withdrawals and deposits on the Solana network on November 9.

In a Nov. 9 email to users, which was circulating on Twitter, Crypto.com reportedly informed users of an “immediate suspension of UDSC and USDT deposits and withdrawals on Solana.”

In the email, the exchange assured its customers that they can always withdraw USDC and USDT at any time using other supported networks, such as Cronos and Ethereum, suggesting that other named networks had not been affected by “recent industry events”.

Cointelegraph contacted Crypto.com, who confirmed that the news circulating on social media about the suspension of USDC and USDT withdrawals and deposits on the Solana network was indeed true. The exchange added that “all unreceived deposits of these two tokens on Solana will be refunded free of charge for the next two weeks.” However, they declined to provide further details on the matter.

The exchange added that “all unreceived deposits of these two tokens on Solana will be refunded free of charge for the next two weeks.” However, they declined to provide further details on the matter.

The past 96 hours has seen crypto markets go into a frenzy due to the collapse of crypto exchange FTX.

On November 6, the CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, announced his intention to liquidate his entire position in FTX Token (FTT), the native token of rival exchange FTX. , which led to a bank run and the crash in the price of its FTT token.

A surprise turn of events occurred on October 8 when Binance’s CEO said his company had “signed a non-binding letter of intent, intending to fully acquire FTX.com and help cover liquidity crisis.

The CEO added that nothing was set in stone as they were “assessing the situation in real time” and had the option “to withdraw from the agreement at any time”.

Less than 48 hours later, the CEO announced that he had pulled out of the deal entirely.

Related: Solana wipes out ‘Google rally’ gains, but 50% Sol price recovery still in play

The unfolding of these latest events has caused a cascading effect on the markets, especially those related to FTX and its affiliates.

On November 9, Cointelegraph reported that Solana (SOL) was on track to record its worst daily performance ever, with SOL’s price dropping over 40% due to its association with founder Sam Bankman-Fried. crypto-focused hedging. fund Alameda Research and the FTX cryptocurrency exchange.

Amid the ongoing events, Solana Labs co-founder Anatoly Yakovenko shared a tweet suggesting that Solana was unaffected by the ongoing events. He stated; “Solana Labs, an American company, had no assets on ftx.com, so we still have tons of leads and luckily still a small team.”

At press time, Solana was trading at around $14.97, down 30.29% in the last 24 hours.