Category: Crypto.com

Categories
Crypto News Crypto.com FTX Shiba Inu

A Preview of Crypto.com’s Reserves Reveals 20% in SHIB Tokens

In the fallout of the swift and shocking collapse of FTX last week, rival exchange Crypto.com chose to share their cryptocurrency reserves publicly in an effort to shore up customer confidence. 

However, this attempt to ease customer concerns backfired when it was revealed just over 20 percent of Crypto.com’s reserves, valued at close to US$500 million, are held in the meme-coin Shiba Inu (SHIB).

This means that Crypto.com holds more SHIB than Ethereum (ETH) and USD Coin (USDC) — in fact, the only cryptocurrency the exchange holds more of than SHIB is Bitcoin (BTC).

What Exactly Does This Mean?

Initially many in the crypto community incorrectly believed that Crypto.com’s large holdings of SHIB were part of an irresponsible meme-coin heavy investment strategy. 

It’s since been clarified that the exchange holds so much SHIB because its customers have purchased a lot of the token, the exchange holds 1:1 reserves of customer assets — as a Crypto.com spokesperson explained:

“The reason our Proof of Reserves include Shiba is because we hold customers’ balances 1:1. Thus, our Proof of Reserves are dictated by our customer holdings.”

Crypto.com spokesperson

Crypto.com Sent 320,000 ETH To Wrong Address

In another concerning piece of news, a Twitter user named @jconorgrogan unearthed a transfer of 320,000 ETH from Crypto.com to a wallet on rival exchange Gate.io.

This transfer, representing over 80 percent of Crypto.com’s ETH holdings, occurred on October 21 but it wasn’t until @jconorgrogan noticed it and tweeted that the wider crypto community became aware of it.

Crypto.com says that the transfer was an error, claiming the ETH was accidentally sent to a whitelisted account under its control on Gate.io instead of being transferred to a new cold storage wallet. 

Since the accidental transfer occurred, 285,000 ETH have been confirmed to have been returned to Crypto.com, while the remaining 35,000 have been sent to a different address whose ownership is yet to be confirmed.

Crypto.com CEO Kris Marszalek says the incident has been resolved and claims new processes have now been put in place to avoid a recurrence:

Fear Triggers Flight to Safety, CRO Dump

This string of bad news has sparked fear among Crypto.com customers, prompting many to move their assets off the exchange and sell their holdings of CRO, Crypto.com’s exchange token. As a result, Crypto.com’s reserves have fallen significantly over the past few days, from close to US$3 billion to just over US$2 billion. 

Similarly, the price of CRO has dropped precipitously in the past few days — at the time of writing data from CoinGecko showed it was down over 50 percent since Wednesday, changing hands at US$0.05

Categories
Australia Crime Crypto.com Illegal

Melbourne Couple to Face Trial Over $10.4M Crypto.com Blunder

crypto.com

A Melbourne couple who spent most of a A$10.4 million refund they received in error from cryptocurrency exchange Crypto.com are set to face trial. An administrative mistake made by an employee in Bulgaria saw the couple receive the huge sum instead of what should have been a A$100 refund.

Jatinder Singh, 37, and his partner, Thevamanogari Manivel, 40, appeared in Melbourne Magistrate’s Court on October 11 to hear the charges against them. 

At the hearing, Singh pleaded not guilty to theft and dealing with property that is the suspected proceeds of crime while Manivel pleaded not guilty to negligently dealing with property that is the suspected proceeds of crime. 

Employee Blunder Turns $100 Into $10.4M

The error which led to the couple’s unintended windfall occurred on May 12, 2021 when a Crypto.com employee based in Bulgaria was processing a refund. Rather than entering the correct cash amount of A$100 in the ‘amount’ field, the employee inadvertently entered an account number. This simple mistake resulted in over A$10 million being deposited into Manivel’s Commonwealth Bank account.

Upon receiving the enormous payment, Singh claims he thought he had won a competition run by Crypto.com after supposedly receiving a notification from the Crypto.com app. However, Crypto.com claims there was no competition that involved a $10 million prize at the time, and even if there were, the company doesn’t notify winners of competitions through in-app notifications.

Couple Bought Up Big Time

After receiving the erroneous refund, the court was told Manivel bought four houses, numerous vehicles, furniture and art. The court was also told A$4 million was transferred to a bank account in Manivel’s home country of Malaysia.

Crypto.com was unaware of the mistake until it was revealed in an audit of the company’s finances in December 2021, around six months after it occurred.

Despite Attempt to Flee, Couple Couldn’t Escape the Fallout

Manivel was arrested in March of this year at Melbourne airport with a one-way ticket to Malaysia, in what prosecutors say was an attempt to flee the country.

Both Manivel and Singh have been committed to stand trial at a later date, Manivel was released on bail while Singh remains in custody awaiting trial.

Crypto.com is also pursuing civil action against the couple in an attempt to recover almost A$3 million dollars which is yet to be paid back.

Categories
Crypto News Crypto.com Gemini Jobs Markets

BlockFi and Crypto.com to Shed 400+ Jobs Amid Crypto Rout

Lending platform BlockFi and major cryptocurrency exchange Crypto.com are set to cut more than 400 jobs between them in the wake of this week’s 12 percent crypto market slump.

In a June 14 tweet, BlockFi CEO Zac Prince said “roughly 20 percent” of its workforce would be shed, which amounts to 170 employees:

Tweeting last weekend, Crypto.com CEO Kris Marszalek quoted corresponding figures of 5 percent and 260 employees:

Latest in a Line of Job Shedders

Both bosses blamed this year’s steadily deteriorating crypto market following its US$3 trillion peak last November. But surely the catalyst for the pending dismissals would have been this week’s 12 percent plunge, which pushed the market cap below US$1 trillion.

Neither firm is unique in its intention to downsize staff. Gemini, helmed by Winklevoss twins Cameron and Tyler, has cut 10 percent of its workforce, and Coinbase, another major US exchange, has withdrawn more than 300 job offers and introduced a hiring freeze. Middle Eastern exchange Rain Financial has reportedly culled “dozens” of jobs.

Gone Big Too Soon?

Like BlockFi, Crypto.com was riding high just a matter of months ago. In November last year, it paid a reported US$700 million in naming rights for the Los Angeles sports and culture arena formerly known as the Staples Center. Earlier this year, the company signed a five-year sponsorship deal worth A$25 million with the Australian Football League. The highly visible exchange, whose name is now ubiquitous in sporting circles, also has partnerships with the UFC, Formula 1, Italian Football Lega Serie A and French football powerhouse Paris Saint-Germain.

Categories
Crypto News Crypto.com Cryptocurrencies Payments

Crypto.com Partners with Shopify to Offer Zero Transaction Fees

Crypto.com has announced that Shopify merchants can now use the exchange to make and receive cryptocurrency payments in their stores.

In a recent blog post, Crypto.com said it would allow all Shopify merchants to accept up to 20 cryptocurrencies as payment using Crypto.com’s Pay feature. These currencies include Bitcoin, Ethereum, Doge, CRO (Crypto.com’s native token), and more:

Zero Settlement Fees After One Month

The exchange will charge zero settlement fees to merchants one month after signing up. After that, only 0.5 percent settlement fees will be applied, much lower compared to 2.5 percent using credit cards. Additionally, Crypto.com’s Pay users can receive up to 10 percent CRO cashback on transactions.

We’re happy to welcome Crypto.com to help Shopify merchants provide an additional fast and convenient way for customers to pay for their online orders. Our growing blockchain ecosystem demonstrates our commitment to supporting merchants with alternative payment methods on their storefronts, helping to further expand what’s possible in commerce.

John S. Lee, lead of Blockchain ecosystem, Shopify

Crypto.com Regaining Ground After Massive Backlash

Crypto.com has been steadily pushing cryptocurrency adoption across the globe, forming new partnerships with companies from different industries so they can enable crypto transactions and payments.

The latest news comes two weeks after the exchange decided to restart its staking rewards program. The company did so after sustained negative feedback from its community after suspending it, causing the CRO token to drop more than 10 percent.

Last month, Crypto News Australia reported that Crypto.com had partnered with South Australia’s Peregrine Corporation to introduce crypto payments in its petrol stations.In January, the global exchange also signed an A$25 million sponsorship deal with the Australian Football League.

Categories
Crypto News Crypto.com Tokens

Crypto.com Restarts Staking Rewards Following Brutal Community Backlash

Crypto.com has had to restart its staking rewards program after the community reacted harshly to the company announcing it would discontinue it.

Native Token Crashes 11% Amid Backlash

Revisions to Crypto.com’s staking rewards sent its native token CRO tumbling 11 percent as the community expressed its dismay. The exchange announced it would be reducing rewards on the usage of its Visa-enabled cards based on the tiers offered.

In a blog post, Crypto.com said lower tiers such as Midnight Blue and Ruby Steel would get 0 percent, while Royal Indigo and Jade Green would receive 0.5 percent and Icy White and Frosted Rose Gold 1 percent, while Obsidian, the highest tier, would get a mere 2 percent.

Revised CRO card rewards. Source: Crypto.com

Crypto.com CEO Kris Marszalek said the firm would continue to offer staking rewards to its card users just a day after eliminating the program. The decision has since been rescinded, with Marszalek subsequently tweeting:

Rewards are still less than those offered at the moment, to which the community reacted badly. Marszalek, however, said the changes were necessary to ensure “long-term sustainability” of yields offered on its card program:

Crypto.com had already slashed rates of returns offered on its token deposits this year. Cuts announced on March 26 reduced flexible returns offered by the firm on popular tokens such as Bitcoin and Ethereum to 0.5 percent from between 1.5 and 2 percent.

Crypto.com Gets Active in Sports Arena

Crypto.com is gaining increasing traction in the sports arena. Last year, the firm signed a US$35 million multi-year deal with renowned European football club Paris Saint-Germain. In January, it also clinched a five-year partnership worth A$25 million with the Australian Football League.

Categories
Bitcoin Crypto News Crypto.com Sports

UFC Fighters Can Now Receive Their Bonuses in Bitcoin

The Ultimate Fighting Championship (UFC) is taking its partnership with Crypto.com to the next level with the introduction of “Fan Bonus of the Night” – an innovative collaboration with the major exchange where fans vote on the allocation of fighter bonuses for pay-per-view (PPV) events to be paid out in bitcoin:

Fans Allocate Fighter Bonuses

Until now, the decision as to which fighters delivered performances worthy of a bonus lay solely with UFC matchmakers. However, since the advent of “Fan Bonus of the Night”, fans are now able to participate in what is always a controversial decision.

The inaugural fan bonuses will commence this weekend at UFC 273, headlined by Aussie featherweight champion Alexander “The Great” Volkanovski, who defends his crown against South Korean veteran TKZ, otherwise known as “The Korean Zombie”.

Alex Volkanovski (@alexvolkanovski) | Twitter
Alex Volkanovski proudly representing the Australian flag. Source: UFC

Voting for the “Fan Bonus of the Night” will take place on Crypto.com and is open to all users globally. Each fan will get three votes per PPV and can vote for two fighters within each bout. Voting opens at the start of the PPV prelims and ends one hour after the conclusion of the event. 

Bonuses on Top of Bonuses

In total, three bitcoin bonuses will be awarded, ranging from US$10,000 to U$30,000. Given that fighter pay remains a hot topic within the MMA community, it’s worth noting that these fan bonuses will be in addition to fighter salaries, as well as the U$50,000 “Fight of the Night” and “Performance of the Night” bonuses typically awarded.

“Uncle Dana”, as UFC president Dana White is affectionately known by fans and MMA (mixed martial arts) journalists alike, spoke positively about Crypto.com’s proactive approach to increasing fan engagement:

They’re [Crypto.com] constantly coming up with new ideas about how we can work together to connect with the fans. This new Fan Bonus of the Night is an awesome way to get fans more engaged in our events while rewarding the fighters for bad-ass performances.

Dana White, UFC president

In 2021 we saw a flurry of professional athletes elect to take their earnings in bitcoin, and this trends appears to be picking up steam. In January, UFC heavyweight champion Francis “The Predator” Ngannou elected to take half his fight purse in bitcoin, saying: “I believe bitcoin can empower people everywhere.”

As an inflation-resistant savings technology, it’s hard to argue with The Predator’s assessment of Bitcoin. However, given his knockout power, you’d probably be inclined to agree with him irrespective:

Categories
Australia Bitcoin Crypto.com Payments South Australia

South Aussie Service Station Partners with Crypto.com to Accept Crypto

Australia’s On the Run (OTR) petrol stations and convenience stores will be accepting crypto payments as soon as July 2022. The move comes as Peregrine Corporation, a South Australian group of companies, teams up with global exchange giant Crypto.com to introduce cryptocurrency payments in all its OTR stores:

Move Makes Peregrine the Largest Australian Business to Accept Crypto Payments

Peregrine is the largest privately owned company in South Australia and is best known for its OTR convenience store/petrol station outlets, of which it has more than 170 across South Australia and Victoria. This move will allow customers to pay for fuel, snacks, and even Subway in more than 30 different cryptocurrencies. Once the system is finalised in July, Peregrine will become the largest business in the country to accept in-store crypto payments.

Peregrine is working with Singapore-based exchange Crypto.com to implement its Pay Merchant service as its payment settlement layer. Datamesh, a Sydney-based payments systems provider, will roll out point-of-sale terminals allowing shoppers to pay via the Crypto.com application with their crypto holdings.

Yasser Shahin, executive chairman of Peregrine Corporation, said:

The growth and mainstream acceptance of cryptocurrency adoption in Australia and the rest of the world have been phenomenal and has offered us a clear opportunity to tap into the momentum of this fast-growing space for the benefit of our customers.

Yasser Shahin, executive chairman, Peregrine Corporation

Karl Mohan, Crypto.com general manager Asia and Pacific, describes the deal as a “landmark partnership”, adding that it enables the crypto company to “walk the talk on what we set out to do when we first launched in Australia – support our customers to pay with cryptocurrencies at real-time market prices and avoid the cost and hassle of fiat conversions”.

Australia’s Foray into Crypto Retail Payments

Last year, Crypto News Australia reported that Australian companies were starting to accept Bitcoin as a payment option for their services. Companies from various industries are getting in on crypto payments; they include NBN Internet RSP Luantel, Queensland Solar and Lighting, Broadwater Build Perth Building Company, Dream PC Australia, and Pet Parlour Australian Online Pet Shop. However, in a new report published this year, it was found that Bitcoin payments have declined while other cryptos surged in payment usage.

Categories
Crypto News Crypto Staking Crypto.com DeFi Stablecoins

Crypto.com Slashes Interest Rates Suddenly on Crypto Staking Services

In what is a worrying precedent for investors across the board, leading exchange Crypto.com has again slashed the rate of returns it offers on token deposits.

Announced on March 26, the cut – the platform’s second this month – reduces flexible returns offered by Crypto.com on popular tokens such as Bitcoin and Ethereum to 0.5 percent from between 1.5 – 2 percent. Returns on larger amounts, particularly stablecoins, have effectively been halved to 4 percent.

The promotional face of Crypto.com, actor Matt Damon.

Crypto.com said the new rates would apply immediately, and that pre-existing deposits will not be affected. In an announcement earlier this month, the platform said its planned rate cuts would come into effect from April 4. This latest interest cut also makes returns offered by Crypto.com lower than those on other major platforms, including Celsius and BlockFi.

Backlash Swift and Considered

Users took to social media to protest the cut, especially as it came without warning. Reddit user u/wyzard135 summed up the overall reactive mood of investors with the following post:

“The backlash [Crypto.com] is facing is well-deserved. Even though its rate cut in this market condition […] is understandable, some transparency and communication [would] go a long way.

“However, can’t help but notice this is exactly what banks do; the past couple of years their interest rates have been plummeting and there’s practically no communication to customers about it. Customers will only see their interest paying continuously shrink, and will have to manually look up interest rates, only to see [them] keep falling.

It pains me to see Crypto.com stooping to this behaviour and I fear not only crypto.com but other crypto exchanges will start behaving like banks, which ironically crypto is trying to replace, once they get big enough with unchecked power.

Reddit user u/wyzard135

Stablecoin Staking Reduced from 12% to 8% on Three-Month Term

The move has also spilled over into the DeFi space, with returns on stablecoin deposits falling to around 12 percent across most platforms, after initially being as high as 20 percent. Some platforms are only offering 8 percent on a three-month term.

Crypto News Australia has published a list of the 10 best crypto staking websites to earn daily returns. At the top of the list is Zipmex Australia, and a guide to investing on the platform can be accessed here.

Second on the list is Swyftx, Australia’s top-rated exchange, which offers staking rewards for top market cap coins including Solana, Cardano and Polkadot. In total, 12 assets are available for staking through the platform with zero fees.

Last week, ANZ became the first Australian bank to mint the Australian dollar stablecoin A$DC.

Categories
Crypto News Crypto.com Sports

Crypto.com is Official Crypto Sponsor for 2022 FIFA World Cup

Cryptocurrency exchange Crypto.com will become an official sponsor of the FIFA World Cup Qatar 2022, both organisations announced in a joint statement this week.

While trading cryptocurrencies in Qatar is illegal – it’s banned by the country’s central bank – Crypto.com said the partnership would help drive further awareness of the exchange globally, as the FIFA World Cup is football’s largest governing body and brings over a billion views in each tournament.

The deal also highly benefits FIFA as it will help it grow on a global scale, said its chief commercial officer Kay Madati, citing Crypto.com’s recent related moves in the world of sports:

We are delighted to have a global brand like Crypto.com join us as a sponsor of the exciting and groundbreaking FIFA World Cup in Qatar, ultimately helping to grow our beautiful game on a global scale.

As part of the sponsorship deal, Crypto.com users will be able to attend matches and win exclusive merchandise.

Big Moves by Crypto Companies

Of course, the crypto community viewed the sponsorship as a major move by the exchange. Several crypto institutions are actively gaining ground in the mainstream media, signing partnerships with major organisations and becoming official sponsors of international tournaments:

Last month, Brisbane-based exchange Swyftx made sporting history by inking a three-year partnership with Australia’s National Rugby League (NRL) to become its exclusive crypto partner.

In addition, the Australian Football League (AFL) recently signed an A$25 million sponsorship deal with Crypto.com, eclipsing its current deal with Toyota (worth A$18.5 million.)

Crypto.com has been actively working in expanding its reach worldwide with numerous partnerships in the sports industry. In July 2021 it became the first crypto sponsor of the largest mixed martial arts promoter, the UFC, in a US$175 million deal.

Categories
Crypto Exchange Crypto News Crypto.com Hackers

Crypto.com Finally Admits Close to $34 Million Lost in Hack

Earlier this week, Crypto.com suspended withdrawals after some users reported suspicious activities on their accounts. Initial losses were estimated at US$15 million but later this ballooned to US$34 million, a figure that has since been confirmed by the world’s fourth-largest exchange.

A Rough Week for Crypto.com

On establishing that some 400 users had experienced unusual activity on their accounts, the company put a hold on withdrawals and reassured users that their funds were safe.

Early reports suggested that US$15 million had been stolen, as reported by blockchain security group PeckShield.

The stolen funds were subsequently laundered through popular coin mixer Tornado. However, one eagle-eyed on-chain analyst claimed that the losses were closer to US$34 million.

The on-chain analyst was initially alerted by an “abnormally large withdrawal” from Crypto.com that was then mixed through a well-known Bitcoin tumbler, as illustrated below:

BTC withdrawal through a tumbler. Source: @ErgoBTC

Crypto.com Finally Confirms Losses

In a statement on its website, Crypto.com confirmed that the hack had impacted 483 users and that unauthorised withdrawals totalled 4,836.26 ETH, 443.93 BTC and approximately US$66,200 in other cryptocurrencies.

The company added:

No customers experienced a loss of funds. In the majority of cases we prevented the unauthorised withdrawal, and in all other cases customers were fully reimbursed.

Crypto.com statement on the hack

The company ascribed the hack to a problem with two-factor authentication (2FA) and said that going forward, it would put in place several mechanisms to create additional layers of security:

Based on replies to the Tweet above, it remains to be seen whether the matter is well and truly over, or if there is still more to come.