A storm is brewing within Crypto.com and the Cronos ecosystem. Recently, a minority of influential investors flipped a governance vote to support a controversial proposal allowing Crypto.com to reissue 70 billion CRO tokens. This decision raises the total token supply from 30 billion to 100 billion, with the new tokens set to vest over ten years. This move has ignited significant anger among holders.
Many of the CRO holders, especially those linked with Crypto.com and Cronos Labs, favored this proposal, but the reaction from the wider community has been predominantly negative, as the idea was largely opposed when introduced earlier this month.
These tokens, once removed from circulation in 2021, were believed to be permanently eliminated during a time when Crypto.com was thriving. The recent decision to reintroduce them feels illogical to many, signaling a dilution of existing holdings.
As a result, the price of CRO plummeted 10% the day after the voting took place, raising concerns that Crypto.com might be implementing another scheme to exploit its users.
To comprehend these allegations, one must consider Marszalek’s past, marred by accusations of fraud and suspicious business tactics. Along with Rafael Melo, the current CFO, Marszalek came under scrutiny at Ensogo, a failed e-commerce venture that collapsed in 2016.
The Ensogo Scandal
Crypto.com was founded in 2019, but before this venture, both executives worked at Ensogo, an e-commerce platform that specialized in flash sales. This company met its demise in 2016, leaving significant damage to its investors and partners.
Ensogo marketed deep discounts on various products, aimed at emerging markets in Southeast Asia. At its height, it boasted an active subscriber base of over 600,000.
Problems began when Ensogo went public on the Australian Securities Exchange, revealing a declining revenue with notable losses. In June 2016, it ceased operations in all but Hong Kong, completely shutting down just days later.
Marszalek resigned right before the company’s downfall, quickly establishing Foris Limited, which aimed to create a crypto-backed debit card.
Crypto.com Proposal to Unburn 70 Billion CRO
Crypto.com grew rapidly following its inception, particularly during the DeFi and NFT surge, achieving an all-time high token price in 2021. At this peak, the decision was made to burn 70 billion CRO in an effort to elevate demand, a tactic now viewed as disingenuous.
In March 2025, Crypto.com announced a plan requiring $5 billion, sourced from the burned CRO, to support its growth and venture into AI enhancements, calling for a governance vote for these developments. The company holds significant voting influence, allowing it to secure the proposal despite the community’s protests.
Not surprisingly, despite attempts to create a façade of democracy, the vote succeeded, leading to the minting of 70 billion CRO tokens to be released over the next ten years.
To pacify critics, Crypto.com promised to burn 50 million CRO—a trivial amount compared to the billions entering circulation. Detractors warn this is blatant dilution that could severely impact token prices while benefiting the exchange.
Is Crypto.com Surreptitiously Insolvent?
This is not the first occasion Crypto.com has faced controversy. Concerns are mounting about its financial viability due to issues surrounding its Visa cards and recent governance vote against community wishes. The reissuance of 70 billion CRO tokens raises immediate alarm. If Crypto.com genuinely needed $5 billion to expand its ecosystem, why not focus on enhancing its utility for a natural price increase instead?
Moreover, the exchange has yet to provide an audited proof-of-reserves since 2022, leaving critical doubts about its financial stability. Previous auditors have distanced themselves from the company, generating further scrutiny.
The fallout from a possible collapse would leave CRO holders in a precarious position, arousing regulatory concerns in an already fragile crypto environment.
