Financial regulators continued to hover over FTX after the cryptocurrency exchange collapsed last week, as rival firms sought to reassure investors of its own stability.
Kris Marszalek, chairman of Singapore-based Crypto.com, refuted mentions that the exchange was in trouble. The statement comes after investors over the weekend questioned a transfer of $400 million worth of ether tokens to rival Gate.io on Oct.
Marszalek tweeted on Sunday that ether was recovered and returned to Crypto.com, but the Wall Street Journal reported that withdrawals on the exchange increased over the weekend.
An audited proof of the exchange’s reserves will be published within weeks, Marszalek said on Monday. A Crypto.com spokesperson did not respond to a request for comment.
Crypto.com is in the top 10 exchanges by trading volume globally, but is lower than FTX and market leader Binance.
Another cryptocurrency exchange, Kraken, said on Sunday that it had frozen the accounts of FTX, affiliate Alameda Research, and its executives.
“We are actively monitoring recent developments with the FTX estate, are in contact with authorities and have frozen Kraken account access to certain funds that we suspect are associated with FTX-related ‘fraud, negligence or misconduct’,” said a spokesperson. Kraken’s voice.
Smaller exchange AAX halted withdrawals over the weekend, citing failures by an unidentified third-party partner during a scheduled system update.
AAX said it expects to resume regular operations in 7-10 days, but said in a note to clients: “In light of the insolvency of one of the biggest players in our industry last week, cryptocurrency users are legitimately concerned about operational stability. financial and centralized exchanges of digital assets”.
FTX filed for bankruptcy on Friday, in one of the biggest meltdowns in the cryptocurrency industry, after traders withdrew $6 billion from the platform in 72 hours and rival Binance pulled out of a bailout deal.
The collapse is being investigated by several authorities, including New York prosecutors, a source with knowledge of the investigations said on Monday.
LedgerX LLC, a unit of FTX, on Monday formally withdrew a December 2021 request to the U.S. Commodity Futures Trading Commission to offer products that are not fully collateralized.
Bahamian financial and securities regulators are investigating possible misconduct in the FTX collapse, the Royal Bahamas Police Force said on Sunday.
Source: CNN Brasil
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