Crypto.com Suspends USDC and USDT Withdrawals on Solana Amid FTX Crisis

The cryptocurrency platform Crypto.com suspended deposits and withdrawals in stablecoins USDC and USDT on the Solana blockchain. The company cited \”recent events in the industry\”.

Anyone else just got this? pic.twitter.com/LmX5LtXV4x

— Lars (@lars0x) November 9, 2022

A corresponding letter to clients from Crypto.com was published by The Block analyst Lars Hoffmann. Users in the comments confirmed receiving similar messages.

“The decision takes effect immediately. However, you can withdraw USDC and USDT at any time by using other supported networks, including Cronos and Ethereum,” the letter states.

USDT/USDC on other chains operate normally of course.

FTX was an important bridge/venue for SOL-based stablecoins, we do not want any additional risk to our users coming from this area, hence disabling it.

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

The operator USDC, Circle, added support for the coin on the Solana network in October 2020.

PSA: USDC on Solana is operating flawlessly, no issues with issuance and redemption, and is completely unaffected by what’s happening on FTX.

— Jeremy Allaire (@jerallaire) November 10, 2022

“There are no problems with issuance and redemption; it is not affected at all by what’s happening with FTX,” he added.

Against the backdrop of a broad market decline, driven by the liquidity crisis at FTX, the price of the native Solana token fell 54% over the past week (CoinGecko). SOL quotes have fallen more than any other top-20 by market capitalization.

In Jeremy Allaire’s view, FTX’s insolvency is comparable to the collapse of the Lehman Brothers investment bank, which catalysed the 2008 crisis.

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