Kris Marszalek, CEO of crypto exchange crypto.com, posted a thread on his Twitter account saying that more FUDs will be coming targeting crypto.com and that he has “nothing to hide.” admitted.
Marszalek hinted that the attackers spread FUD about him and his current company, focusing on his failed business 20 years ago. Addressing the community’s concerns, Marzalek revealed details of his failed business, adding that lessons learned from the failure led him to his current position.
2) It’s important to note that my early failures made me who I am today. A competent operator who knows how to grow a business and manage risk.
— Chris | Crypto.com (@kris) December 7, 2022
According to his thread, Marszalek co-founded a consumer electronics company called Starline in 2004. In two years the company had grown into a medium-sized company, but was hit by the financial crisis of 2008.
In 2009, the company underwent a forced liquidation and had to pay the bank $2.5 million. Marzarek says he learned from this experience:
“1. Do not borrow money or use financial leverage to drive growth.
2. Don’t engage in a business model where the more you sell, the less cash you have.
3. Always prepare for a financial crisis. It will affect you in ways that are sometimes difficult to predict. “
Marszalek paid off his bank debt by 2012 with the money he earned from the e-commerce business he started after Starline.
Marszalek also hinted that three lessons learned in the process are important to the well-being of his current company, crypto.com.
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After the demise of FTX, Crypto.com has only partially disclosed its reserves. Unfortunately, this was not enough to assuage the community’s fears of contagion and raised the question of whether crypto.com was insolvent. It’s working as normal,” he said.
A day before this statement, on November 13th, Marszalek admitted that Crypto.com mistakenly transferred 85% of its Ethereum (ETH) reserves to Gatei.io during November. Marszalek had expressed concern about his FUD targeting crypto.com at the time.