Crypto.com halts withdrawals of USDC and USDT on Solana

Crypto.com has notified its users that all deposits and withdrawals for Tether’s USDT and Circle’s USDC have been suspended on the Solana network.

Leading crypto exchange Crypto.com notified its customers via email a few hours ago that it had paused deposits and withdrawals for USDT and USDC stablecoins on the Solana network.

Crypto.com told its users that the pause is immediate. Hence, its users can no longer deposit and withdraw USDT and USDC stablecoins on the Solana network.

However, Crypto.com didn’t provide any explanation regarding why it is suspending those transfers. The move shouldn’t cause a problem for users as the USDC and USDT stablecoins exist on a wide range of other blockchains, including Ethereum, Polygon, BNBChain, and Tron. Crypto.com wrote;

“Following recent industry events, please be informed that we have suspended deposits and withdrawals of USDC and USDT on the Solana blockchain in the Crypto.com App and Exchange. This is effective immediately. However, you may withdraw USDC and USDT at any time using other supported networks, including Cronos and Ethereum. Please note that retrieval fees for depositing USDC and USDT on the Solana network in the Crypto.com App and Exchange will be waived for two weeks, starting from today.”

Crypto.com is adding to the market chaos caused by FTX’s ongoing struggles. Crypto exchange FTX had to pause withdrawals on its platform as it struggled to complete liquidity orders.

Binance initially agreed to acquire FTX and take on its numerous liabilities but revealed a few hours ago that it would no longer go through with the deal. According to Binance, FTX’s situation is beyond where Binance can help at the moment.

Our direct exposure to FTX meltdown is immaterial: less than $10m in our own capital deposited there for customers’ trade execution.

That’s very little compared to our global revenues surpassing US$1 billion for two consecutive years.

— Kris | Crypto.com (@kris) November 9, 2022

Crypto.com is one of the companies affected by FTX’s recent struggle. However, Crypto.com’s CEO Kris Marszalek said the firm’s direct exposure to the FTX meltdown is immaterial since it has less than $10 million of its own capital deposit on the FTX platform for customers’ trade execution.