Crypto.com has come under fire from the cryptocurrency community after reportedly reissuing 70 billion Cronos (CRO) tokens that were previously burned in 2021.
The move has sparked concerns over decentralization and transparency, with critics accusing the exchange of undermining trust in the token’s supply.
The controversy started on March 25 when blockchain analyst ZachXBT alleged on X that Crypto.com had quietly reinstated the previously burned tokens. He described the action as deceptive, stating, “CRO is no different from a scam,” while pointing out that the reissued tokens account for 70% of the total supply.
ZachXBT further criticized the exchange’s control over the token supply, suggesting that the reissuance contradicted community expectations.
“Your team just reissued 70B CRO a week ago that was previously burned ‘forever’ in 2021 (70% total supply) and went against the community wishes as you control the majority of the supply,”
he said.
The revelation coincided with news that Crypto.com had entered into a non-binding agreement with Trump Media to launch U.S. crypto exchange-traded funds (ETFs) through its broker-dealer, Foris Capital US. The timing raised further suspicion, with ZachXBT questioning why Trump Media would choose Crypto.com over major competitors like Coinbase, Kraken, or Gemini in light of the token reissuance.
Addressing the backlash, Crypto.com CEO Kris Marszalek defended the decision, claiming it was a strategic move in response to the shifting U.S. regulatory landscape. He argued that the token burn in early 2021 was a necessary defensive measure at the time but is no longer relevant. He further dismissed criticisms, suggesting that the community should focus on long-term growth rather than short-term concerns.
Beyond concerns about token dilution, critics have also raised alarms about the governance process behind the reissuance. Reports from March 19 indicate that GitHub users claim Crypto.com’s validators control up to 70% of the voting power on the Cronos blockchain, effectively allowing the exchange to override community votes.
Unchained sources, cited by journalist Laura Shin, further allege that Crypto.com holds between 70% and 80% of total voting power, leading to accusations that governance decisions may not reflect genuine community consensus. Amid mounting scrutiny, Marszalek took to X on March 19 to reaffirm Crypto.com’s financial and regulatory stability.
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