Bitcoin and other cryptocurrencies remained under pressure on Monday after crypto exchange FTX’s collapse last week as rival exchanges sought to reassure nervous investors of their own stability. Kris Marszalek, CEO of Crypto.com, a Singapore-based crypto exchange, refuted suggestions that it might be in trouble, saying that in a live YouTube address, 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 $400 million transfer of ether tokens to the Gate.io exchange on October 21. Marszalek had tweeted on Sunday to say the ether was recovered and returned to the exchange, but The Wall Street Journal reported that withdrawals at Crypto.com increased over the weekend.

Audited evidence of the exchange’s reserves report will be released in a few weeks, Marszalek said on Monday, adding that the exchange had not engaged in any “irresponsible lending products”. Crypto.com is among the top 10 exchanges by revenue globally, but smaller than FTX and market leader Binance. He made headlines in 2021 when he signed a $700 million deal to rename the Staples Center in Los Angeles to Crypto.com Arena and had actor Matt Damon promote the platform.

FTX filed for bankruptcy on Friday, in one of the most publicized crypto blasts, after traders rushed to withdraw $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed bailout deal. It was thrown into more chaos on Saturday after it said it detected unauthorized access and analysts said hundreds of millions of dollars in assets had been moved from the platform under “suspicious circumstances”.

FTX’s new chief executive, John J. Ray III, said Saturday the company was working with law enforcement and regulators to mitigate the issue and was doing “everything possible” to secure assets. Former FTX CEO and founder Sam Bankman-Fried previously told Reuters that some of the transfers out of FTX resulted from “confusing internal labeling”.

Another crypto exchange Kraken said on Twitter on Sunday that it froze the accounts of FTX, affiliate crypto trading firm Alameda Research and their executives.

“We have been actively monitoring recent developments with the FTX domain, are in contact with law enforcement, and have frozen Kraken account access to certain funds that we suspect are associated with ‘fraud, negligence or misconduct’. “linked to FTX,” a Kraken spokesperson said. said in a statement. Bitcoin fell back below $16,000 early on Monday before recovering to trade at $16,774, up 2.8% on the day. Still, with losses so far in November of 18%, it remains on course for its biggest monthly percentage decline since June, when fallout from the failure of stablecoin TerraUSD rocked markets.

FTX’s token was worth just $1.3, down 94% in November, while Crypto.com’s Cronos token halved last week to $0.06, according to pricing site Coingecko INVESTOR NERVES

The collapse of FTX has left investors jittery as unverified rumors swirl, even as exchanges release details of their reserves and promise further disclosures. “One of the theories circulating is that exchanges move crypto to shore up their balances and make everything look good even when it’s anything but,” said Zennon Kapron, founder of the fintech consultancy. Kapronasia.

“It’s like someone showing someone a bank statement that you had $100 in your account at 2 p.m. this afternoon. At 1 p.m. it was maybe $1 and someone just wired you $99, and at 4 p.m. you’re going to send it back… A snapshot tells us very little about the actual health of an exchange.” Separately, Asia’s smallest exchange, AAX, halted withdrawals over the weekend citing failures at an unnamed third-party partner during a planned system update.

AAX said it hoped to resume regular operations for all users in 7-10 days, but in a note to customers noted that: “Given the insolvency of one of the largest players in our industry the last week, crypto users are understandably concerned about the operational functioning and financial stability of centralized digital asset exchanges.” Changpeng Zhao, CEO of Binance, the world’s largest crypto exchange, tweeted that he would seek to create an industry stimulus fund to help “otherwise strong but cash-strapped” projects, adding that more details would follow.

Binance last week signed a non-binding letter of intent to buy FTX’s non-US assets, but later abandoned the deal, precipitating its bankruptcy. Zhao has since warned of a “cascading” crypto crisis.

Meanwhile, regulators continued to circle around FTX, which itself had been a white knight investor for failing crypto projects this summer. The Bahamas securities regulator and financial investigators are investigating possible misconduct following the collapse of FTX, the Royal Bahamas Police Force announced on Sunday.

Visa Inc, the world’s largest payments processor, said Sunday it was severing its global credit card agreements with FTX. (Additional reporting by Xinghui Kok in Singapore and Elizabeth Howcroft in London; Editing by Sam Holmes, Kirsten Donovan)

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