A storm is brewing within Crypto.com and the Cronos ecosystem. Yesterday, a small group of whales flipped a governance vote to support a contentious proposal, allowing Crypto.com to reissue 70 billion CRO tokens. This decision increases the total supply from 30 billion to 100 billion, with the additional 70 billion CRO vesting over ten years—a move that has sparked contention and dissatisfaction among holders.
Only a handful of CRO holders, primarily Crypto.com and Cronos Labs (the architects of this proposal), wanted it to sail through. For the most part, since the idea was first floated earlier this month, the majority opposed reissuing the 70 billion CRO.
These tokens were “burned” and removed from circulation during the Golden Era of 2021 when Crypto.com was a dominant force and CRO ranked among the top-performing coins. Unburning them now seems illogical to many and essentially means dilution of the existing supply.
With whales stepping in to vote for the “strategic reserve” against the community’s wishes, CRO prices dropped, sliding 10% yesterday.
Concerns are now mounting that Crypto.com, led by CEO Kris Marszalek, might be orchestrating yet another scam to exploit users.
To understand these claims, one must look back at Marszalek’s long and controversial history, tainted by allegations of fraud and questionable business practices.
Alongside Rafael Melo, Crypto.com’s current CFO, Marszalek faced scrutiny at Ensogo, a company that collapsed in 2016.
The Ensogo Debacle
Crypto.com launched in 2019, but before that, Marszalek and Melo were executives at Ensogo.
Ensogo was an e-commerce platform specializing in flash sales and daily deals, operating across Southeast Asia. It collapsed in 2016, leaving investors and partners in financial ruin.
The platform offered deep discounts on goods, services, and travel, targeting emerging markets like Singapore, Hong Kong, and Thailand. At its peak, it boasted over 600,000 active subscribers and a vast network of merchant partners.
Between 2013 and 2014, Ensogo expanded rapidly, capitalizing on its revenue to onboard more users and attract investors. This aggressive growth was spearheaded by Marszalek, who also fueled investor hype.
Trouble emerged in 2015 when Ensogo was listed on the Australian Securities Exchange (ASX). Filings revealed declining revenue, and the company posted an $11.6 million loss that year.
On June 20, 2016, Ensogo announced it would shut down operations in all markets except Hong Kong. Three days later, on June 23, it closed entirely and delisted from the ASX.
The shutdown left customers unable to redeem vouchers, merchants unpaid, and shareholders—once believers in Ensogo’s vision—empty-handed.
Marszalek resigned in June 2016 and, within weeks, founded Foris Limited, the parent company of Monaco.com, to create a crypto-backed debit card.
Monaco raised $26 million in an ICO in 2017, roughly a year after Ensogo collapsed.
However, instead of fulfilling its ICO promises, Monaco rebranded to Crypto.com after purchasing the crypto.com domain for $12 million. This rebranding introduced a new token: CRO.
Did he write this article? His track record is 0 – ? Ensogo, Beecrazy, Monaco, Cro. Which was the successful business? pic.twitter.com/Qdz7msj2pV
— MarcelinsKamdoumFAKE (@FakeKamdoum) March 19, 2025
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Crypto.com Proposal To Unburn 70 Billion CRO
The early years of Crypto.com were a success. It grew as a crypto exchange and, capitalizing on the DeFi and NFT rally from 2020 to 2021, saw CRO prices soar to an all-time high in 2021, effectively becoming one of the best cryptos to buy.
At that peak, the team announced plans to burn 70 billion CRO out of the total 100 billion supply—a move now viewed as a PR stunt to boost demand, with CRO nearing $1 when this decision was made.
Fast forward four years, and CRO holders are up in arms. Could this signal the beginning of the end for Crypto.com, echoing the Ensogo script?
In early March, Cronos Labs and Crypto.com announced plans to tap into the AI sector, grow its ecosystem, and even push for a spot CRO ETF. All this required $5 billion, or 70 billion CRO.
They argued this could only come from the burned CRO, prompting a proposal to reverse the 2021 burn of 70 billion tokens. As a community-driven ecosystem, the proposal went to a governance vote.
However, with Crypto.com—the team—controlling roughly half the voting power, the passage was nearly assured despite community opposition.
Even with efforts to appear democratic, the vote succeeded, and Crypto.com will now mint 70 billion CRO, valued at $5 billion. These newly minted tokens will vest over ten years.
To mitigate backlash, Crypto.com pledged to burn 50 million CRO—a negligible amount compared to the 70 billion entering circulation.
Critics argue this is blatant dilution that will depress prices while benefiting the exchange itself.
Is Crypto.com Secretly Insolvent?
This isn’t the first time Crypto.com is under fire.
From its handling of Crypto.com-backed Visa cards to pushing through this recent proposal against community wishes, concerns are growing about the exchange’s solvency.
Reissuing 70 billion CRO—tokens claimed in 2021 to be permanently removed—raises red flags.
If Crypto.com were solvent and needed $5 billion, why not focus on growing its ecosystem and boosting CRO’s utility for natural price gains? Moreover, the exchange hasn’t released a fully audited proof-of-reserves since 2022, a point of concern.
Analysts also note that Crypto.com’s previous auditor, Mazars–which stopped offering audit services to crypto firms in late 2022– publicly distanced itself, stating its audit didn’t account for major liabilities, leaving serious questions about its financial health.
If Crypto.com collapses, CRO holders will bear the brunt, forcing regulators to scrutinize the crypto space again—just weeks after Bybit’s $1.2 billion hack.
Lessons from Marszalek’s Ensogo past, where he resigned just before its downfall, are telling. If Crypto.com is printing its way out of insolvency, diluting CRO holders, then holders must be on the lookout lest they be rugged, perhaps even divesting and considering some of the hottest crypto presales to buy in 2025.
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Is Crypto.com Insolvent?
- CRO Vote Controversy: Whales flipped a governance vote to reissue 70 billion CRO, diluting supply
- Ensogo Collapse: Marszalek led Ensogo to a 2016 shutdown, leaving customers and merchants unpaid
- Insolvency Concerns: Crypto.com’s lack of recent audits and CRO reissuance fuel speculation of financial trouble.
The post Who Is Kris Marszalek? CRO Holders Hit In Major Scam: Is Crypto.com Insolvent? appeared first on 99Bitcoins.
