CRO

Crypto.com CEO Counters ‘FUD,’ Addresses Past Bankruptcy

Crypto.com CEO Kris Marszalek said the past failure of Starline is a story about struggle and redemption that helped prepare him for difficult situations.

BSCN

December 7, 2022

CEO Provides Truth on Twitter

In the face of what he called “More FUD targeting Crypto.com,” the Centralized Exchange’s CEO Kris Marszalek took to Twitter to directly address a past business failure and share lessons that he learned from the experience.

1) More FUD targeting https://t.co/pFc4Pz9nFR is coming, this time about a business failure I had very early in my career. I have nothing to hide, and am proud of my battle scars, so here’s the unfiltered story 🧵
— Kris | Crypto.com (@kris) December 7, 2022

In summary, Marszalek co-founded a consumer electronics business called Starline in 2004. The company failed in 2009 during the global financial crisis as a result of unpaid customer credit lines that became liabilities for the business and then the co-owners personally, including Marszalek.

6)

1. Never borrow money or use financial leverage to drive growth.
2. Do not engage in business models where the more you sell the less cash you have.
3. Always be prepared for a financial crisis. It will affect you, sometimes in ways that are hard to predict.
— Kris | Crypto.com (@kris) December 7, 2022

Marszalek goes on to tell how he rebounded by founding a new e-commerce business, the success of which enabled him to repay all creditors with interest by 2012, leading to the annulment of the 2009 bankruptcy petition.

“Legally, it restored the status quo and cleared my name,” he said.

The Crypto.com CEO described the experience as, ultimately, a difficult but fruitful learning opportunity.

13) Try, fail, learn, try again. Repeat until you succeed. Behind every success story, there are hundreds of failures and lessons learned. My story is no different.
— Kris | Crypto.com (@kris) December 7, 2022

In the aftermath of the collapse of Sam Bankman-Fried’s FTX empire, Centralized Exchanges such as Crypto.com and Binance have been striving to reassure customers that their business models are radically different and significantly safer, including by promising to produce audited Proof of Reserves.

What is Crypto.com:

Crypto.com is a cryptocurrency exchange that was started operating in 2016. It has extended its reach to over 10 million users within 5 years. The platform was founded by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo, with its headquarters in Hong Kong. In addition to the cryptocurrency application, the platform also runs the Crypto.com Visa card, one of the world’s largest cryptocurrency card programs, the exchange, and a DeFi wallet. The exchange operates across 3 continents, the Americas, Europe, and Asia.

For more information about the project:‍