Hello VirgoCX users,
The FTX collapse resulted in one of the worst cryptographic disasters in recent history. This isn’t just about one single exchange going under; the trust for the centralized exchange and the passion for crypto and blockchain have been fading.
Personally, I feel very sad about some Canadian users who may have used FTX. Centralized exchanges have immense responsibilities for safeguarding their users’ assets. This responsibility cannot be fulfilled by tweets or heavy investments in PR. As a whole industry, we face the biggest challenge of dealing with uncertainty while providing certainty and security for our customers. But Virgo is standing strong.
It takes considerable effort to achieve a simple statement—protecting users’ assets—including, but not limited to, the following:
1) Constant reconciliation for both fiat and crypto assets is necessary to ensure no mistake or mismatch can ever happen. It is important to know that one-time spot auditing is not enough.
2) Multiple levels of crypto asset wallet protection. For any crypto asset that leverages Virgo’s technology, we currently ensure that 100% CAD equivalent worth of capital are deposited in a trusted Canadian financial institution so you can sleep with no worry about any hack.
3) Fiat assets (in CAD or USD) are stored with trusted Canadian banking partners.
4) In terms of providing customers with highest security standard and complying with security regulations, we have obtained SOC 2 Type 1 and are preparing for SOC 2 Type 2.
Another thing to highlight is that VirgoCX has no relationship with FTX and has never used FTX as a liquidity provider. In order to become VirgoCX’s partner, they simply have to pass our most rigorous third-party DD, and FTX at the time simply wasn’t able to pass it.
More importantly, this is not only about saying that we are safe after this FTX disaster but also expressing our determination to protect our users from any future potential fallout from bad actors in the industry.
As an industry player, I would also like to take this opportunity to convey the message to all our users. We will be tireless in our efforts to improve our products and features, and the goal is that you can find the majority of your trading needs with us instead of having to use any global unregulated exchanges in the future.
To reiterate, at Virgo, a greater focus on customer needs, strict protection of user assets, and product innovation will always be at the forefront of VirgoCX’s mind.
Stay tuned for our exciting new feature and product releases before the end of the year!
As always, feel free to follow me on Twitter at @adamcai15 or email me with any of your concerns at [email protected].
Stay safe and be cautious during this turbulent time.
VirgoCX is always here to help.
Thanks,
Adam Cai
VirgoCX CEO & Founder