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Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Crypto.com is facing fresh scrutiny from the cryptocurrency community following its controversial vote to mint 70b CRO tokens, worth about $5b.
CRO is the native cryptocurrency of the Crypto.com ecosystem, used for transaction fees, staking and rewards on the platform. The move has fueled fears that the exchange might be secretly insolvent, according to a viral Reddit post by user u/GabeSter on r/CryptoCurrency.
The controversy erupted after Crypto.com proposed to remint tokens it had previously burned in 2021. At the time, the company had touted the token burn as a way to solidify CRO’s long-term value by reducing supply.
However, on March 2, 2025, the exchange put forth a proposal to reintroduce the 70b CRO supply, sparking widespread backlash. Although the proposal was put to a vote, the exchange’s significant control over voting power ensured its passage, despite most independent validators rejecting it.
After the proposal’s passing, CRO’s value plunged 5.2%, reaching $0.077.
Crypto.com’s Token History Fuels Concerns About Financial Stability
According to u/GabeSter, Crypto.com CEO Kris Marszalek has a history of controversial business decisions. Before launching Crypto.com, Marszalek was the CEO of Ensogo, a now-defunct e-commerce platform that collapsed in 2016, allegedly leaving investors and third-party vendors in financial ruin.
The Reddit post also highlights the early days of Crypto.com, formerly known as Monaco (MCO), which raised $26m in an ICO but later pivoted to acquiring the Crypto.com domain. In 2020, Crypto.com allegedly forced MCO holders to swap their tokens for CRO at an unfavorable rate, which some saw as a bait-and-switch maneuver.
The latest reminting proposal has deepened skepticism about Crypto.com’s financial stability.
While Marszalek claims the additional tokens will be used to create “sustainable flows on the demand side,” critics argue that this is a thinly veiled attempt to inject liquidity at the expense of existing token holders.
The Reddit post likens the situation to a “money printer” scenario, where Crypto.com can generate billions in new tokens with no cost to itself while devaluing the holdings of existing investors.
Further intensifying concerns, Crypto.com has not released an audited financial statement since 2022. After the collapse of FTX, the exchange briefly shared a proof-of-reserves audit in December of that year.
However, the auditing firm, Mazars, later distanced itself from the report, citing concerns that it did not sufficiently account for liabilities. Crypto.com has since refused to provide updated audits, raising further doubts about its financial transparency.
A Crypto.com spokesperson told Cryptonews that the exchange operates under regulatory oversight in over 100 jurisdictions, requiring regular audits and financial reporting.
“Last year was our most successful year in terms of revenue, adding to what was already a very strong balance sheet. Our global exchange business is the fastest growing in the world, and we have well over 100 millions users on our retail app,” they added.
“We are very bullish on our future, particularly in the US market given the new administration’s enthusiasm over our sector. Our leadership has met with administration officials, including our CEO meeting with President Trump and participating in the White House Digital Asset Summit, and look forward to building on our already established success.”
In response to the backlash, Marszalek has largely remained silent but has denied insolvency rumors. However, Crypto.com’s decision to mint $5b worth of CRO while failing to provide updated audits has only fueled further speculation.
Many users in the crypto community now view the remint as an act of desperation, comparing it to tactics seen in failing companies attempting to stay afloat.
There is no concrete evidence that Crypto.com is insolvent. However, rising concerns within the crypto community highlight the need for greater transparency.
Until the exchange provides a clear breakdown of how it intends to use the newly minted tokens and releases updated financial audits, many investors will likely remain skeptical of its long-term viability.
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