A number of Crypto.com (disclosure: a sponsor of Unchained) users reported delays to their withdrawals amid fears that the exchange would follow the same path as the insolvent FTX.
On Monday, some traders who attempted to withdraw their funds from Crypto.com said they had been waiting for over 12 hours for the request to be processed.
The status page on Crypto.com displayed a “withdrawals delayed” notice at around 12:00 pm ET. The message said that the cause of the delays was high network traffic.
“Withdrawals are being processed as usual. No FUD please,” tweeted Crypto.com CEO Kris Marszalek a few hours later.
Marszalek’s tweet comes after an AMA on Sunday where he addressed the insolvency concerns around the exchange.
“People are depositing, people are withdrawing, people are trading. There is pretty much normal activity, just at a heightened level,” said Kris in the AMA.
The Crypto.com CEO also assured users that the exchange’s reserves were sufficient to cover all client assets held on the platform.
“We do not run a hedge fund, we do not trade customers’ assets. We always had 1-to-1 reserves,” said Kris.
Data from CryptoQuant shows that the exchange’s reserves considerably declined recently. In a tweet on Monday, CryptoQuant CEO Ki Young Ju noted that stablecoin reserves on Crypto.com had declined 90%, from $2.9 billion to $292 million, over the past seven months.
Meanwhile, the number of ETH withdrawals on Crypto.com reached an all-time high, with 155,850 withdrawals over the past three days alone.