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Crypto.com Pauses Solana USDC and USDT Withdrawals

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The crypto trading platform Crypto.com has paused all the deposits and withdrawals for Circle’s USDC and Tether’s USDT on the Solana network. The crypto exchange disclosed the information via an email to notify customers that it has halted the flow of two top Solana ecosystem stablecoins.

In the email, Crypto.com cited “recent industry events” announcing the suspension, but it did not explain why the exchange decided to halt these transfers. Note that these two stablecoins, USDT and USDC, exist on almost every blockchain, and the suspension only applies to users looking to move either asset on Solana.

As per the email, users may withdraw and deposit USDT and USDC at any time using other supported networks, including Ethereum and Cronos.

Crypto.com CEO Kris Marszalek tweeted in response to the news saying, “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.”

Given the chaotic crypto market scenario where the FTX-Binance issue is changing the dynamics, the SOL token dropped over 40% on Wednesday.

Most recently, Sam-Bankman-Fried of FTX tentatively agreed to sell his exchange to its biggest rival, CZ of Binance. Consequently, Binance signed a non-binding LOI, intending to fully acquire FTX. But the events took a U-turn, and Binance founder CZ announced today that the exchange will not pursue the potential acquisition of FTX.

Compiled by Coinbold

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