The post Trump Media’s Crypto Partner Accused of Token Fraud – Here’s What Happened appeared first on Coinpedia Fintech News
Shortly after Crypto.com announced its partnership with Trump Media to launch crypto-based ETFs under the Truth.Fi brand, a major controversy erupted. What seemed like a routine business move has now turned into a storm of allegations, shaking trust in one of the biggest names in crypto.
On-chain investigator ZachXBT has accused Crypto.com of secretly reissuing 70 billion CRO tokens that were supposedly burned in 2021 – a move that directly contradicts the company’s promise of a permanent token burn. If true, this could have serious implications for CRO’s value and the broader crypto market.
So, what really happened? Is Crypto.com following in the footsteps of FTX? And does Trump Media even know about the alleged fraud? Here’s everything you need to know.
Why This Matters
In 2021, Crypto.com burned 70% of CRO’s total supply, reducing it from 100 billion to 30 billion. The move was meant to make the token more scarce and valuable.
However, investigative journalist Laura Shin later revealed that Cronos Labs quietly re-minted those same 70 billion tokens for what they called a “new strategic reserve.”
This revelation has angered many CRO investors. One long-time supporter criticized the move, saying, “A burn is a burn. Burned tokens shouldn’t be brought back to life.”
How Will This Affect CRO’s Value?
Now that these tokens have been reintroduced, the total circulating supply of CRO stands at 27,408,853,450.
Current market performance shows:
- Market cap: $2.9 billion
- Fully diluted valuation: $10.3 billion
- Price decline since 2021 peak: Over 91%
- One-year decline: 31.2%
- Growth in the last seven days: 33.6%
- Drop in the last 24 hours: 1.5%
Experts warn that reintroducing these tokens could increase inflation, making CRO less scarce and lowering its value further.
Is Trump Media Aware of the Allegations?
ZachXBT suggests that Trump Media may not be aware of Crypto.com’s alleged fraud. Regardless, CRO will be a key component of the Truth.Fi ETFs, alongside Bitcoin and traditional securities.
However, the ETF plans still require regulatory approval before they can move forward.
Crypto.com’s Control Over the Voting Process
Crypto.com was able to approve the re-minting of these tokens through a community voting process. However, many critics argue the process was unfair because Crypto.com controls over 80% of the voting power.
Some believe the company is using this control to maintain power over CRO’s supply and price movements.
Is Crypto.com the Next FTX?
Crypto investigator TruthLabs has drawn comparisons between Crypto.com and FTX, the collapsed exchange.
He points out several similarities:
- Both were part of the now-defunct Silvergate Exchange Network.
- Both controlled their own tokens—FTX with FTT, Crypto.com with CRO.
- Both spent large sums on sponsorships. FTX partnered with NBA teams, while Crypto.com secured naming rights for major arenas.
- Both received early funding from Binance.
TruthLabs also revealed that a Crypto.com Polygon address was originally funded by Binance, with blockchain data showing connections between the two companies on Ethereum and Polygon networks.
These findings raise concerns that Crypto.com could be following the same risky path as FTX.
What Happens Next?
With these accusations gaining attention, Crypto.com’s credibility is under threat. Many are now questioning whether regulators will intervene and whether Trump Media will rethink its partnership.
For now, the future of CRO and Crypto.com remains uncertain.
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