Connect with us CEO addresses whereabouts of $1B in stablecoins sent to FTX

Blockchain CEO addresses whereabouts of $1B in stablecoins sent to FTX

CEO Marszalek says the firm has recovered much of the funds and has less than $10M in exposure to FTX.

During a live ask-me-anything (AMA) session with users on Nov. 14, CEO Kris Marszalek explained that the firm sent large-sum stablecoins to troubled cryptocurrency exchange FTX to fulfill liquidity within customers’ orders at the time when FTX was still functional. As told by Marszalek:

“Over a year, $1 billion was moved to FTX, and we recovered all of this. We only had exposure of under $10 million when FTX shut down. And FTX was a trading venue where — this is one of the few trading venues with decent liquidity for some of the coins, like the ones I mentioned earlier.”

During the session, Marszalek reassured users that the exchange was not halting withdrawals. Although, a higher volume of requests has led to a backlog of customer service tickets. The chief then stated that only three coins, two of which are FTX tokens and the other being a securitized token, currently have their withdrawal functions suspended on the exchange.

Marszalek also denied allegations that the exchange was using its native token, Cronos (CRO), as collateral for loans: “We’ve never used it. We haven’t needed to use it,” he said, pointing out that the exchange has a “very simple business that generates a fairly decent amount of revenue,” opting to focus on that direction instead.

Finally, in response to users questioning why approximately 20% of the exchange’s reserves are in memecoin Shiba Inu (SHIB), Marszalek explained that they were simply customer deposits:

“It so happens that last year, DOGE and SHIB were two extremely hot memecoins, and people bought a lot. And they’re holding it, they didn’t sell it. We have no control over what you guys buy. You buy it, we will store it — we will keep it safe.”

Like many other exchanges, has seen a flurry of withdrawals in the aftermath of FTX’s collapse. The firm also became the target of wide-ranging conspiracy theories on Twitter after it was uncovered that the exchange accidentally sent 320,000 Ether (ETH) to before recovering the funds shortly after.

Continue Reading

More in Blockchain

To Top