They report that Crypto.com is giving users in the restricted countries of its lending program until March 15 to repay their cryptocurrency loans..
The company updated the list of restricted countries to include the United States, the United Kingdom, and 38 others.. Users from European nations such as Germany, Switzerland and the UK have shared emails from the company about the closing date of the loans. It should be noted that some of these users who do not have cryptocurrency loans on the platform have also received the emails.
According to the new policy, If users do not repay their loans by March 15, their collateral will be sold and loan positions will be closed by the exchange.. Crypto.com did not respond to requests for comment from Cointelegraph at the time of this writing.
The sudden policy change has left Crypto.com customers in anguish and disbeliefand many claim that the exchange’s recent splurge on ads and marketing has started to take its toll on their balance sheet. The exchange’s aggressive marketing spree over the past year has drawn the attention of many, given that the company, unlike many other crypto unicorns, has not raised much capital from investors.
A THREAD ON @cryptocom @cryptocomcs @Kris_HK
It looks like the splurge in marketing is starting to take it’s toll on the balance sheet
I have a fair amount of #XRP – for sure not where my *BAGS* are, but… pic.twitter.com/quLEKNiAEK
— XRPGLOBAL (@xrp_ninja) March 8, 2022
A THREAD ON @cryptocom @cryptocomcs @Kris_HK
It seems that the marketing waste is starting to take its toll on the balance sheet
I have a good amount of XRP – sure it’s not where my *BAGS* or large amounts of money are, but…
Crypto.com’s marketing budget, which includes spending millions on celebrity endorsements, buying arenas, and much more have been a topic of discussion on the internet for a long time. However, the sudden change in its lending policy has only given the theory more prominence.
Crypto lending products have been under regulatory scrutiny for over a yearand several cryptocurrency firms have received a security breach notice from respective state regulators. Gemini and Celsius offered loan products that were investigated by the United States Securities and Exchange Commission. (SEC) in January, while BlockFi fined $100 million for offering unregistered crypto lending products in February.
Additional reporting by Brian Quarmby.
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