Focus on Crypto.com after FTX collapse

The fallout from the collapse of crypto exchange FTX has kept bitcoin and other cryptocurrencies under pressure, with market participants worrying about heavy withdrawals at Singapore-based exchange Crypto.com.

Crypto.com tweeted that its chief executive Kris Marszalek would go live on YouTube to answer questions around some transactions on the platform that had sparked speculation and fund withdrawals.

"A lot has happened in the last week and there are a lot of questions which we want to address," the exchange said on Monday.

The questions around a transfer of a big chunk of ether tokens last month from Crypto.com to another platform were raised by an user who dug through transactions after the company posted its cold wallet addresses online.

While Marszalek tweeted to say the ether, worth about $US400 million ($A600 million), had been accidentally transferred and was recovered, his comments failed to allay concerns in a market already on edge after the spectacular public collapse of FTX last week.

The Wall Street Journal reported that withdrawals at Crypto.com rose at the weekend after Marszalek's tweet. Twitter users pointed to other transfers between some other smaller platforms and exchanges as possible evidence that they were leaning on each other to shore up reserves.

Bitcoin slid further to below $US16,000, taking losses for the month to 22.5 per cent, while FTX's token was at $US1.60 and down 94 per cent in November. Crypto.com's token cronos has halved in the past week to $US0.06.

Crypto.com is among the top 10 exchanges by turnover globally, but smaller than FTX and market leader Binance. It made headlines in 2021 after it signed a $US700 million deal to rename the Staples Center in Los Angeles as the Crypto.com Arena, and got actor Matt Damon to promote the platform.

Meanwhile, the effects of the collapse of Bahamas-based FTX, which filed for bankruptcy on Friday after a rush of customer withdrawals and a failed rescue deal with rival exchange Binance, continued to affect markets.

The Bahamas securities regulator and financial investigators were investigating potential misconduct over the collapse of FTX, the Royal Bahamas Police Force said on Sunday.

Bloomberg news reported exchange AAX had halted withdrawals.

Visa, the world's largest payments processor, said on Sunday it was severing its global credit card agreements with FTX.

Binance chief executive Changpeng Zhao, meanwhile, tweeted that the exchange had never short-sold FTT tokens.

Zhao abandoned a deal with FTX chief Sam Bankman-Fried last week to buy FTX's non-US assets, precipitating the bankruptcy.

He has since warned of a "cascading" crypto crisis and on Monday called for clearer crypto industry regulation.