SCRYPT Digital Statement from Founder on Recent Industry Events

In these turbulent times we thank you for your trust and, as always, SCRYPT would like to provide open, transparent communication.

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In short:

We did not have any exposure to FTX / Alameda or any of their affiliates and have not been affected

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Recent events have again highlighted which organisations you can trust; those who have proper risk management, governance, and integrity.

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SCRYPT has been operating as a trusted, licenced, and audited financial institution since 2019. All customer assets are held 1:1 and SCRYPT is not able to move, encumber, or pool client funds without client direction. Thus, a “bank run” on SCRYPT is not possible.

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Over the past years we have enabled our clients to integrate digital assets into their existing environment. We are here to support you if you have been looking for alternative solutions for your crypto infrastructure and services. Institutions, Trading firms, and Banks, collectively managing over $250+ Billion choose and trust SCRYPT because of our reliability, security, and regulatory standing.

We continue to adhere to and implement strict risk management and monitoring processes across markets, counterparties, and liquidity.

Context: https://www.linkedin.com/posts/normanswooding_riskmanagement-trading-digital-activity-6996042097355018240-4o9B?utm_source=share&utm_medium=member_desktop

At SCRYPT Digital

We maintain adequate control mechanisms and risk management across:

Corporate Governance: Board of Directors, Policies, ProcessesTrading: pre, live, and post-trade checksOperationsSettlements: Transaction Authorisation Policy, Two-Factor Authentication, and Multi-Signature ApprovalWe adhere to the highest levels of KYC, AML, and regulatory and compliance perspective:

_ 3rd consecutive successful compliance and finance Audit, through a Top Tier Auditor BOD AG represented on our Board.

_ Blockchain Analytics & Know Your Token compliance procedures through Chainalysis

_ SRO Licenced under VQF: We did not execute a single trade, or sell a single product before gaining regulatory clarity and achieving the corresponding licencing and supervision

We adhere to bank-grade security standards:

_ Tier 1 Banking partners

_ Fireblocks and accompany Crime insurance, Professional and Privacy Liability insurance

_ Coincover Disaster recovery protection

_ Our processes, financials and cyber security are subject to continuous audits and disclosures

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TL:DR;

1. We build solutions that last, and we don’t take any short cuts
2. We empower our clients and partners to invest in the digital asset economy with complete trust

Our 3 year track record is a testament to this.

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Future:

We will send a separate note around ‘’Lessons learned in 2022’’ — our hope is that looking back at these events, it will be marked as a catalyst for where true innovation, good governance and integrity overtook short-term thinking, greed, and malicious actors.

We look forward to continuing to provide trusted, regulated infrastructure for the crypto industry– and are very thankful to our clients and partners who are joining us on this journey.

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Onwards and upwards.

Sincerely yours,

Norman Wooding

CEO & Founder

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