Crypto.com Accused of Fraud After Announcing Trump Media & Technology Group (TMTG) Partnership to Launch CRO-Based ETFs

On-chain investigator ZachXBT accused Crypto.com of fraud on Monday after the company announced a new partnership with Trump Media to launch crypto-based

Crypto.com has been accused of crypto fraud by on-chain investigator ZachXBT, also known as Zachary Bowell, after Trump Media announced a partnership with the firm to launch crypto-based exchange-traded funds.

The partnership will see Trump Media’s Truth.Fi brand used for the ETFs, which will be funded by crypto and traditional capital. They will be sold through major brokerage platforms in Europe and Asia, as well as inside the Crypto.com app, which the company claims has 140 million users.

Announcing the partnership on Monday, Trump Media & Technology Group (TMTG) (NASDAQ:TMTG) said its new line of ETFs could launch later this year pending regulatory approval.

The startup is launching the products during Donald Trump’s second term as U.S. president and they will be marketed as “Made in America.”

TMTG will offer a combination of cryptocurrencies, including Bitcoin and Crypto.com’s native token Cronos (CRO), and traditional securities across industries such as energy. The backend, custody and token supply will be handled by Crypto.com and its U.S. partner, Foris Capital.

“We are excited to partner with Trump Media to launch their Truth.Fi line of ETFs,” said Kris Marszalek, CEO of Crypto.com.

“We are huge fans of the Trump family and the incredible brand they have built, which has a loyal following and massive reach. We look forward to supporting them in this exciting venture.”

The partnership comes after a turbulent period for Crypto.com, which has faced backlash from its token holders over a move to re-mint 70 billion Cronos tokens that were previously burned in 2021.

Earlier this year, Cronos Labs, the company behind the Cronos blockchain, proposed to mint the tokens for a new “Strategic Reserve.” The tokens had been burned in 2021 as part of a supply cut that reduced the total supply from 100 billion to 30 billion Cronos.

But the proposal faced backlash from token holders, who argued that it would dilute their holdings and breach a promise made by Crypto.com to keep the burned tokens locked away forever.

The vote on whether to allow the minting of these tokens was due to close on Thursday and the outcome will depend almost entirely on Crypto.com itself.

According to crypto researcher Laura Shin, two wallets named Falcon Heavy and Starship, allegedly operated by Crypto.com, used their massive Cronos holdings to push the vote toward approval with 50.92% in favor of the proposal and 48.56% against as of Monday.

However, only 23.5% of eligible voters had participated by that date, and quorum requires 33.4%. Ultimately, Crypto.com is said to control 80% of the voting power, meaning they can force the proposal through despite a lack of community support.

Those facts place the brunt of the upcoming vote on Thursday on the shoulders of Crypto.com to decide if they wish to continue with the minting of the 70 billion Cronos tokens or not.

Despite that, most retail holders are against the re-mint. Many bought in after the 2021 burn, which they were told would keep the max supply at 30 billion Cronos. For them, this move isn’t just about inflation. It’s about trust. They see the action as a betrayal, especially now that Cronos is down 41% in the past year and has dropped 91% since its all-time high in November 2021.

Still, Marszalek and his team seem focused on pushing ahead. The ETF move lets them sell Cronos to a new wave of institutional investors, even if it destroys the trust of existing ones. The decision to revive the full 100 billion Cronos supply—after telling the community it was gone forever—puts Crypto.com at odds with its user base. The proposal claims the funds will help drive Cronos adoption and build the first ETF backed by a token issuer, but critics say it’s just a power grab.

“The Cronos ecosystem is very different from what I see on other chains,” one token holder allegedly told Unchained.

“We barely see any scams and rugs on it, and there is a real meaning in helping each other. There is a strong potential for it to become a major player in the industry. We are lucky to not have projects just launched to suck liquidities like the memecoin mania on Solana. We have our own ecosystem, and it’s built by people who are really passionate.”

Meanwhile, other crypto firms are watching the shift closely.

At Monday’s close, Trump Media shares rose 9% in extended trading. The startup, the parent of Truth Social, is valued at $4.6 billion but reported only $3.6 million in