Crypto.com is under fire from the cryptocurrency community after approving a proposal to mint 70 billion CRO tokens, worth approximately$5 billion. Concerns over financial stability have intensified, with some fearing the exchange may face liquidity issues.

The decision reverses a 2021 token burn initially presented as a strategy to enhance CRO's long-term value. Despite strong opposition from independent validators, Crypto.com's control over voting power ensured the proposal's passage. Following the decision, CRO's price fell 5.2%, reaching$0.077.

Critics have drawn attention to CEO Kris Marszalek's past business controversies, including the collapse of Ensogo in 2016. The move has also reignited concerns over Crypto.com's transparency, as the exchange has not released an audited financial statement since 2022.

However, a proof-of-reserves report was shared that year, and auditing firm Mazars later distanced itself from the assessment.

While Crypto.com insists it remains financially strong and operates under strict regulatory oversight, the lack of updated audits has left many sceptical.

Until the exchange provides clarity on its financial health and the intended use of the new tokens, trust within the crypto community is unlikely to be restored.

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