Crypto.com, which had its workforce reduced by 20% at the beginning of this year and is still experiencing some delays that have caused consumers to complain about higher fees as they attempt to transact or transfer funds via the app—is now trying a new strategy: offering loans out of their crypto-backed loan book.
Crypto.com users have complained about it on Twitter, and Crypto.com responded by requesting an inbox interview with the CEO, Kris Marszalek. No mention has been made of what might be happening internally at the company—but as a user, if you are concerned, I would suggest contacting customer support directly to get more details or ask questions yourself!
User Yogi 83 complained on Twitter that he had invested $50 in a particular coin several times earlier when its performance was more successful. However, when Yogi checked Crypto.com’s app to see how much he could get for the cryptocurrency, he was shocked by the 38% fee deducted from his earnings—a far cry from what had been promised (and expected).
Trading Buzz, another user of Crypto.com, is also seeking an answer to this question: Are you experiencing technical issues because I was charged a 50% withdrawal fee?
Like FTX, Crypto.com is a privately held company with international headquarters that provides various tools for buying, selling, trading, and storing cryptos—including its own token CRM. Its CEO, Kris Marszalek, lives in Hong Kong but works in Singapore’s central business district (CBD).
Although Crypto.com is smaller than FTX, it still ranks globally among the top 15 exchanges. In addition to its quick demise, FTX also spooked investors because of concerns over whether or not they could withdraw their money from the exchange—it had become clear that there were billions of dollars in outstanding withdrawal requests by users who sought their funds. The company’s lack of liquidity drew concern from consumers, who feared that their funds might not remain liquid during a run on the firm. This fear grew further when it became evident that competing exchanges could suffer similar. liquidity problems.
In January, after Crypto.com withdrawals failed and users expressed concerns on the site about deposit issues, many people recalled SBF’s collapse due to its withdrawal failures. SBF convinced users that everything was “fine” until he filed for bankruptcy in November.
