CZ Binance on Audits, FTX, the $2.1 Billion SBF Buyout in 2021, and Current Withdrawal Spree

Binance CEO Changpeng Zhao agreed that the collapse of FTX has induced panic within the sector. He additionally reiterated that the truth that they had been audited by an organization with a considerably respected status has made others in that enterprise extra cautious when working with crypto companies.

He assured that Binance is in good monetary standing, has by no means owed anybody, and has by no means combined buyer funds.

• In a latest interview with CNBC, CZ stated that Binance responded to latest buyer withdrawal requests as ordinary and reassured them that the withdrawal quantity wouldn’t put a pressure on the alternate.
• It is because, in contrast to fractional reserve banks, Binance shops buyer belongings on a 1:1 foundation.

discuss stay @CNBC, @cz_binance :

> I repeat that the quantity of withdrawals can’t trigger issues. @Binance
> That is very totally different from a fractional reserve financial institution, the place Binance holds belongings 1:1.
> verify $USDC The issue was from the financial institution conversion channel and dealing hours 👇 pic.twitter.com/RQTCPQXbsg

— Crypto Potato Official (@Crypto_Potato) December 15, 2022

• Throughout yesterday’s withdrawal ruckus, Binance briefly suspended USDC withdrawals, however the CEO defined that it wanted to transform BUSD to USDC. A couple of hours later, when banks reopened, withdrawals resumed.
• CZ stated it should convert its stablecoin deposits into BUSD, a stablecoin issued by Paxos, a US-regulated monetary companies firm.
• The dialog additionally touched on Binance’s funding in FTX from a number of years in the past, which SBF acquired in 2021. CZ stated it was round $2.1 billion on the time of the switch, most of which was in his FTT token. They’re nugatory now.
• When requested if Binance’s issuing a $2.1 billion verify would matter if the cash had been topic to clawbacks, CZ stated this was a difficulty for the authorized staff to resolve. Nonetheless, he reassured us that Binance’s financials are in fine condition.
• The CNBC Squawk Field host additionally insisted on the problem of an impartial audit by a “respected” Massive 4 accounting agency, asking why Binance has not but finished so.
• CZ has confirmed that it has not negotiated with the Massive 4’s accounting fund, and in addition stated many respected audit companies are reluctant to work with crypto companies due to what occurred with FTX. rice discipline.
• He additionally stated that many audit companies are unable to adequately audit cryptocurrency companies, however that he can be pleased to work with anybody who can carry out a reliable audit.
• Concerning the problem of debt and the truth that some persons are involved about the truth that Binance doesn’t have details about it, CZ as soon as once more said that “Binance doesn’t owe anybody cash”.