Crypto.com denies allegations of market prices manipulation

The Singapore-based cryptocurrency exchange Crypto.com has been accused of engaging in proprietary trading and manipulating market prices, according to allegations reported by the Financial Times. Insiders familiar with the matter revealed that the exchange, which has the support of Hollywood actor Matt Damon, allegedly instructed its employees to conceal its “internal market maker type operation.” However, Crypto.com has denied these accusations and maintains that its employees were not instructed to hide any information from external trading companies. According to the company’s official report, Crypto.com acknowledges the existence of an internal market maker that operates on its exchange, claiming that it is treated no differently from third-party market makers who facilitate efficient markets and tight spreads. The company asserts that its primary source of revenue is its app for retail traders and emphasizes its continuous efforts to enhance order book liquidity and reduce spreads for the benefit of all participants in the market.

The Financial Times report further disclosed that Crypto.com has already conducted substantial trading volumes, with “$35 billion in spot crypto and $21 billion in crypto derivatives” traded so far this year. In January, the CEO of Crypto.com, Kris Marszalek, announced a 20% reduction in the workforce due to unfavorable market conditions. In a separate event, NBA star LeBron James achieved a career-high score of 38,388 points at the Crypto.com Arena in February.

On June 9, Crypto.com declared its decision to discontinue its institutional services for clients in the United States. The company cited limited demand for its services in the region as the reason for ceasing operations there, with the discontinuation scheduled for June 21.

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