ZachXBT, a prominent blockchain investigator, has publicly criticized Crypto.com over the reissuance of 70 billion burned CRO tokens. The move has sparked widespread outrage and raised concerns about the integrity of the crypto market.
A Surprising Breach of Trust
According to ZachXBT, Crypto.com had previously burned 70 billion of its native tokens in 2021, valued at over $5.3 billion, to reduce the supply from 100 billion to 30 billion CRO tokens, supporting decentralization efforts. However, in a surprising twist, the company allegedly reissued the same tokens, effectively undoing the burn and flooding the market with additional supply. ZachXBT has accused Crypto.com of attempting to deceive its users and manipulate the market.
Cronos Labs, a Web3 startup accelerator, submitted the proposal, which seeks to restore the total CRO supply to its original 100 billion tokens. The reissued tokens would be held in a dedicated Cronos Strategic Reserve escrow wallet for 10 years.
ZachXBT Sounds the Alarm
ZachXBT has been vocal about his concerns, stating that the reissuance of the tokens is “no different from a scam”. The blockchain investigator’s criticisms of Crypto.com have awoken the crypto community, with many users expressing outrage and disappointment over the company’s actions, viewing it as a retrogression.
Many argue that reissuing burned tokens undermines the integrity of the crypto market and breaks a fundamental rule of tokenomics. The incident has raised serious questions about the trustworthiness of crypto exchanges and the need for greater transparency and accountability in the industry.
Crypto.com has not publicly addressed the backlash. However, the company’s CEO, Kris Marszalek, recently announced a partnership with Trump Media to launch a series of ETFs and ETP products for ‘Made in America’ digital assets, which includes CRO.
Meanwhile, Infini, a next-generation neobank, has filed a lawsuit against the perpetrators of the recent $50 million stablecoin heist on its platform which occurred on 24 February 2025. The hackers exploited a loophole in Infini’s smart contract, gaining access to drain approximately $50 million worth of stablecoins from the platform.
