A massive wave of withdrawals is underway on Crypto.com

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They don’t want to take any risks. After FTX’s descent into hell, they know it may be only a matter of hours away. On the Crypto.com cryptocurrency exchange platform, there is panic. Fear is contagious and a mass movement has just been recorded tonight. On the Ethereum blockchain, transactions out of Crypto.com wallets follow an exponential curve. A significant portion of users seem to seek to empty their accounts to flee the platform in the event of asset freezes and withdrawals.

Originally, this wind of panic comes from a movement of transparency wanted by the platform to avoid any problem at the FTX. To prove its solvency, Crypto.com released a report to show where its assets were. And as we wrote to you this weekend, it is with great astonishment that we could see a 22.18% exposure of the company to SHIB, the Shiba Inu cryptocurrency, supposed to be, like Dogecoin, a crypto – parodic currency particularly sensitive to high volatility.

The target locked, Crypto.com remained in the sights throughout the weekend. On Twitter, faced with the loss of investor confidence in trading platforms, the boss of Binance Changpeng Zhao added a layer by advising to “flee” such services as soon as possible. At Crypto.com, we defend ourselves from diversifying our activities and being a very different case from that of FTX (insolvent). But the damage is done: in recent hours, our colleagues from The Chainsaw have found that 89,000 withdrawals have just been made from the platform.

Suspicion of manipulation of figures

Nothing could slow down this pace (which benefits cold wallet companies like Ledger) while the boss of Crypto.com admitted last Saturday to having carried out a clumsy transaction, in the order of 400 million dollars in Ethereum. According to him, he would have sent the funds to a wrong address, which he could have recovered without any problem by following up. For many, this transaction is very suspicious. Some accuse Crypto.com, which sent those funds to another company called Gate.io, of wanting to split its funds to release more substantial “reserve evidence” during audits.

“It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with the Gate team and the funds were then returned to our cold storage. New processes and features have been implemented to prevent this from happening again”Crypto.com boss Kris Marszalek wrote on Twitter.

His troubles will not end there. Already on Twitter, the popular cryptocurrency account known as 0xfoobar posted a series of observations about the woes of the Crypto.com exchange. There would be something very similar to the crazy numbers of FTX and its boss Sam Bankman-Fried for him, as client funds may be used by the company to finance its own trading activities.

Crypto.com’s Native Cryptocurrency Plunges

The descent into hell of FTX had direct consequences on the price of crypto-currencies. In massive loss of confidence, the market has seen over $200 billion evaporate in the past week. In addition to flagship tokens, FTX’s native cryptocurrency, FTT, lost nearly all of its value. Now it’s the CRO’s turn to melt. Within three days of Crypto.com’s troubles, its native token has already lost more than 50% of its price.

The CRO was particularly useful on the platform. The risk, in addition to not being able to withdraw their funds, would be for Crypto.com customers to see their fortunes evaporate in the next few days… even in the next few hours.



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