Since the demise of FTX, Binance, the biggest cryptocurrency exchange in the world, has had to contend with a deluge of FUD. Through its most recent blog post, the company is now retaliating.
Binance released a blog post in Chinese on December 22 that clarified seven important points. There was no English-language version available at the time this article was written.
The temporary halt to USDC withdrawals earlier this month was the first of these. The exchange consolidated its stablecoin reserves into BUSD, it said, and did this during a “token swap” conversion period.
Binance addresses availability of sufficient reserves
The existence of sufficient reserves for withdrawals was the next issue it addressed. It affirmed that “all users’ assets in Binance are supported 1:1” and that the company’s financial situation was sound because it earns a sizable profit from transaction fees. CryptoQuant examined Binance’s reserves on December 16 and found no evidence of “FTX-like” behavior.
“Binance will not embezzle users’ funds for any transactions or investments, nor does it have any debts, nor is it on the list of creditors of any company that has recently gone bankrupt.”
It was stated that encrypted on-chain verification was a new area that these businesses may not be able to carry out in regards to Mazars and the “Big Four” auditing companies refusing to work with crypto companies.
It was noted that these audits typically focus on the listed company’s financial situation rather than confirming reserve assets.
The audit reports for Binance have since been taken down from Mazars’ website. Binance added that since it was a private company rather than a publicly traded one, it was exempt from disclosure requirements.
According to Binance, the company has been the target of salacious reporting from the mainstream media for quite some time in response to a Reuters report asserting that the U.S. Department of Justice was looking into the business.
In addition, it stated that it spent the most money battling cryptocurrency crime and had the most regulatory licenses globally.
Finally, the blog reaffirmed CEO Changpeng Zhao’s remarks that FTX, not CZ’s exchange, was responsible for its own demise. Other exchanges are not seen as competitors by CZ, the company claimed, adding that “we are more focused on constantly promoting and expanding industry adoption.”