NEW YORK: Bitcoin and other cryptocurrencies were under pressure on Monday following last week’s spectacular collapse of crypto exchange FTX, while rival exchanges sought to reassure jittery investors of their own stability.

Kris Marszalek, chief executive of Singapore-based crypto exchange Crypto.com, rebutted suggestions it was in trouble, saying in a YouTube livestream that the platform would prove all naysayers wrong.

The “AMA (ask-me-anything)” session came after investors took to Twitter over the weekend to question a transfer of $400 million worth of ether tokens to the Gate.io exchange on Oct 21.

Marszalek tweeted on Sunday that the ether was recovered and returned to the exchange, but the Wall Street Journal reported withdrawals at Crypto.com rose over the weekend.

An audited proof of the exchange’s reserves will be published within weeks, Marszalek said on Monday. The exchange did not engage in any “irresponsible lending products,” he added.

Crypto.com is among the top 10 such exchanges by turnover globally, but smaller than FTX and market leader Binance. It made headlines in 2021 by signing a $700m deal to rename the Staples Center in Los Angeles as the Crypto.com Arena, and getting actor Matt Damon to promote the platform.

FTX filed for bankruptcy on Friday in one of the highest-profile crypto blowups after frenzied traders withdrew $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed rescue deal.

The crypto exchange’s collapse is being probed by multiple authorities, including US prosecutors in Manhattan, a source with knowledge of the investigations said on Monday.

Regulators continued to circle FTX, which had itself been a white-knight investor for failing crypto projects last summer.

The Bahamas securities regulator and financial investigators are investigating potential misconduct over FTX’s collapse, the Royal Bahamas Police Force said on Sunday.

Published in Dawn, November 15th, 2022

Opinion

Editorial

Misplaced priorities
Updated 19 Jul, 2024

Misplaced priorities

The government must call its APC at the earliest and invite all stakeholders to take part; this matter cannot be delayed further.
Oman terror attack
19 Jul, 2024

Oman terror attack

THE normally peaceful sultanate of Oman was shaken by sectarian terrorism on Monday when militants belonging to the...
Urban flooding
19 Jul, 2024

Urban flooding

THE provincial authorities have been taking precautionary measures, or so we have been told, to cope with emergency...
A way forward
Updated 17 Jul, 2024

A way forward

Before political leaders inflict more damage, they must give talks a chance.
Export delusions
Updated 18 Jul, 2024

Export delusions

Plummeting exports as a ratio of GDP is one of the major reasons driving the current economic slowdown and the balance-of-payments crisis.
Diversity in UK politics
17 Jul, 2024

Diversity in UK politics

THE recent UK elections have ushered in the most diverse parliament in the nation’s history. Under the leadership...