Dear Phemex Users,
The recent events in our industry have been incredibly distressing and heartbreaking to watch. We stand compassionately with all those affected and share in your shock. The widespread repercussions have undoubtedly affected us all in some way. At Phemex, we’ve reflected carefully on our roles and responsibilities as a leader in this space and would like to take this opportunity to state some of our practices and positions transparently.
Above all else, we remain fully committed to ensuring that nothing of this nature can ever happen to you as our customer. We’d like to start by addressing the main question that’s likely in all of our users’ minds.
Have the events surrounding FTX affected Phemex and its user funds?
The answer is a resounding NO.
All Phemex user funds are 100% backed in our reserves, and we have recently announced, Phemex Merkle-tree proof-of-reserves are now available. Regarding FTX, we do not own any $FTT, have never invested in their company, and have no funds on their platform. However, outside of our lack of involvement with FTX, the more critical way in which we protect our user funds relates to the uncompromising rules we follow as an exchange:
- Phemex does not operate a platform token and does not engage in any irresponsible investment activities.
- Phemex has never, and will never, employ any customer funds for any proprietary trading.
- Phemex will never lend out or use any customer funds as margin for company trades.
- Phemex does not have any type of corporate debt.
As a professional and well-trusted service relied on by users across 200 countries, we simply have no interest in dishonest activities involving our customer funds. In fact, asset safety and security have been our top priorities since our launch.
We’ve invested significant resources into our hierarchical deterministic cold wallet system. All user deposits are isolated with individual cold wallet addresses only accessible via offline multi-signatures. Furthermore, we apply our extensive and sophisticated Wall Street risk control experience to rigorously monitor all operators and withdrawal requests, immediately suspending any operations at the sign of any irregularity.
We firmly believe that our pioneering security technologies and our approach of placing our customers first have led to the success we’ve experienced today. We’ve achieved our status as a top 10 global exchange without relying on exploiting our user funds. Instead, we’ve built the most responsive and intuitive trading platform that now offers an array of expansive spot listings and perpetual contracts.
We thank our great community for your support and trust. We hope you have some peace of mind knowing your funds remain entirely safe and our withdrawal systems continue to operate smoothly.
We are resilient in our determination to offer you the safest place to achieve financial freedom and welcome you to persevere with us in this journey.
The Phemex Team
