Crypto.com CEO Kris Marszalek recently discussed Sam Bankman Fried’s FTX enterprise.
After FTX Co-Founder Sam Bankman-Fried (aka “SBF”) tweeted about FTX’s liquidity problem, Marszalek responded.
Several hours later, Crypto.com’s CEO remarked on FTX’s collapse and the crypto sector. “The industry is depressed. This proves that focusing on compliance and security is the best long-term strategy. We’ve never lent irresponsibly (no risk of bad debt losses). We had no hedge funds (no risk of trading losses).
We’ll work for enhanced openness and regulation to make this the norm for all crypto platforms. Consumers expect more. As the industry’s most regulated platform by licenses, registrations, and security certifications, we recognise the need of transparency and will continue to engage authorities to enhance and defend our business so what occurred today doesn’t happen again. Cryptocurrency acceptance relies on it.”
Brian Armstrong, another CEO, tweeted: Coinbase has no exposure to FTX, FTT, or Alameda. This occurrence seems to be the outcome of dangerous business activities, involving conflicts of interest and misusing client funds (loan user assets).
“We don’t touch clients’ funds until asked. We hold all assets dollar-for-dollar, and consumers may withdraw whenever… We’re US-based and public because we value openness and trust. Our public audited financials reveal how we keep consumer monies. We’ve never released a cryptocurrency.”