Crypto.com Exchange Suspends Withdrawals on Solana blockchain as Crypto Prices Crash – Another Exchange in Trouble?
Major cryptocurrency exchange Crypto.com has suspended deposits and withdrawals of two major stablecoins, USDT and USDT, on the Solana blockchain.
In an email to users on Wednesday, the platform reportedly said that they are suspending deposits and withdrawals of USDC and USDT on the Solana Blockchain, effective immediately.
The note did not mention the exact reason for the move. However, it said stablecoin withdrawals and deposits in other blockchains like Ethereum and Cronos would resume normally.
In a Thursday tweet, Crypto.com CEO Kris Marszalek said the recent developments around FTX and Alameda Research, which are two of the biggest backers of Solana, led to the decision.
"FTX was an important bridge/venue for SOL-based stablecoins, we do not want any additional risk to our users coming from this area, hence disabling it," Marszalek said, adding that other chains operate normally.
As reported, FTX, one of the largest cryptocurrency exchanges, has been hit with "a significant liquidity crunch." Initially, Binance signed a letter of intent to acquire the failing crypto exchange, but backed out of the deal saying the "issues are beyond our ability to help."
The news further exacerbated the crypto market crash. Bitcoin, the world's largest cryptocurrency, tumbled to as low as $15,682, a level not seen in two years. Ethereum also dropped to $1,083, down by around 4% over the past day.
Following the unprecedented failure of FTX, which was known as crypto’s bail-out king during the recent crypto meltdown and looked pretty healthy, many in the crypto industry have voiced concern over the reliability of other centralized players.
In a bid to address this skepticism, Marszalek has said that crypto exchanges should publicly
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