Crypto.com is facing intense scrutiny after approving a controversial proposal to mint 70 billion CRO tokens, worth approximately $5 billion. The decision has sparked fears over the exchange’s financial stability, especially as it has not released an updated audit since 2022.

Reversing a Key Token Burn

In 2021, Crypto.com burned a significant portion of CRO tokens, claiming it would enhance long-term value. However, the recent re-minting contradicts this strategy, raising concerns about the exchange’s liquidity and financial position.

Despite strong opposition from independent validators, Crypto.com’s control over voting power ensured the proposal’s approval. As a result, CRO’s price fell 5.2%, dropping to $0.077.

CEO’s Controversial Past Adds to Concerns

Critics have pointed to CEO Kris Marszalek’s business history, particularly the collapse of Ensogo in 2016. This, combined with the lack of audited financial statements since 2022, has fuelled distrust among investors.

While Crypto.com previously released a proof-of-reserves report, auditing firm Mazars later distanced itself from the assessment, further shaking confidence.

Crypto.com Defends Its Financial Strength

Despite the backlash, Crypto.com insists it remains financially stable and operates under strict regulatory oversight. However, without a clear explanation of how the newly minted tokens will be used, scepticism persists.

For now, uncertainty looms over Crypto.com’s long-term stability. Until the exchange provides updated audits and greater transparency, concerns over potential hidden risks and liquidity issues are unlikely to fade.