Crypto.com has notified its users that all deposits and withdrawals for Tether’s USDT and Circle’s USDC have been suspended on the Solana network.
Crypto.com, a leading crypto exchange, notified its customers by email that it had stopped deposits and withdrawals for USDT- and USDC stablecoins on Solana networks a few hours earlier.
Crypto.com advised its users that the suspension is immediate. Users can now withdraw USDT or USDC stablecoins only through the Solana network.
However, Crypto.com didn’t provide any explanation regarding why it is suspending those transfers. The move shouldn’t cause a problem for users as the USDC and USDT stablecoins exist on a wide range of other blockchains, including Ethereum, Polygon, BNBChain, and Tron. Crypto.com wrote;
“Following recent industry events, please be informed that we have suspended deposits and withdrawals of USDC and USDT on the Solana blockchain in the Crypto.com App and Exchange. This change is immediate. You can withdraw USDC or USDT using any supported network, including Cronos or Ethereum. Please note that retrieval fees for depositing USDC and USDT on the Solana network in the Crypto.com App and Exchange will be waived for two weeks, starting from today.”
Crypto.com is adding to the market chaos caused by FTX’s ongoing struggles. FTX, a crypto exchange, had to halt withdrawals from its platform because it was unable to fulfill liquidity orders.
Binance had initially offered to purchase FTX and assume its many liabilities. However, Binance announced a few hours later that it would not continue with the deal. According to Binance, FTX’s situation is beyond where Binance can help at the moment.
Our direct exposure to FTX meltdown is immaterial: less than $10m in our own capital deposited there for customers’ trade execution.
That’s very little compared to our global revenues surpassing US$1 billion for two consecutive years.
— Kris | Crypto.com (@kris) November 9, 2022
Crypto.com is one of the companies affected by FTX’s recent struggle. However, Crypto.com’s CEO Kris Marszalek said the firm’s direct exposure to the FTX meltdown is immaterial since it has less than $10 million of its own capital deposit on the FTX platform for customers’ trade execution.
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