Crypto.com halts withdrawals of USDC and USDT on Solana

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

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

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

However, Crypto.com has not provided any explanation as to why it is suspending these transfers. This decision should not pose 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;

“Due to recent industry events, please note 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 can withdraw USDC and USDT at any time using other supported networks including Cronos and Ethereum Please note that the recovery fee for depositing USDC and USDT on the Solana network in the Crypto.com app and exchange will be canceled for two weeks, starting today.

Crypto.com adds to the market chaos caused by FTX’s continued struggles. Crypto exchange FTX had to suspend withdrawals on its platform as it struggled to complete liquidity orders.

Binance initially agreed to acquire FTX and take on its many responsibilities but revealed a few hours ago that it would no longer be entering into the deal. According to Binance, FTX’s situation is beyond what Binance can help at the moment.

Crypto.com is one of the companies affected by FTX’s recent struggle. However, Crypto.com CEO Kris Marszalek said the company’s direct exposure to the FTX collapse is irrelevant since it has less than $10 million of its own capital deposit on the FTX platform for executing client trades.