Mazars confirms CryptoCom maintains 100%+ reserves
Finally, the users of CryptoCom are confident to use the CryptoCom exchange.
CryptoCom is a popular crypto exchange and the position of this exchange is 13th rank in the whole crypto sector. Exchange is known for its high-security crypto services under a full compliance-based environment. The services of this exchange are available in almost every country of the world.
On 9 December, CryptoCom announced that third-party international auditor Mazars confirmed via cryptographic proof that CryptoCom holds the user’s funds perfectly.
The exchange also said that each CryptoCom user can verify the holding of reserved funds easily to confirm that corresponding accounts are fully accessible.
“It is now easy for our existing users to verify that Crypto.com has a 1:1 reserve of all customer crypto assets deposited on its platform, and users can confirm the assets in their account are responsibly backed and accessible,” the exchange stated.
FTX collapse & fear among CryptoCom customers
As we know very well, FTX crypto exchange filed for bankruptcy under chapter 11 in a US bankruptcy court along with more than 100 of its affiliated companies, on 12 November 2022. The main reason behind the FTX collapse was the use of users’ funds blindly in affiliated companies & uncontrolled amounts of money spent on services promotions.
Many reports claimed that FTX former CEO Sam Bankman-Fried (SBF) donated huge amounts of funds to politicians & also gifted expensive items to celebrities.
After the FTX exchange, it was CryptoCom that was actively promoting its services at high-level events without disclosing the amount that the company was spending. After the downfall of FTX exchange, many people claimed that CryptoCom was also spending huge funds in promoting services more likely to FTX so there were chances that CryptoCom was also using users’ funds & may suspend services under a liquidity crunch situation.
Read also: Binance CEO says Kevin O’Leary is searching for someone to blame Implosion of FTX
