Since FTX went down, the largest cryptocurrency exchange in the world, Binance, has had to deal with a flood of FUD (fear, uncertainty, and doubt). With its latest blog post, the company is now fighting back.
Binance wrote a blog post in Chinese on December 22 to answer seven important questions the company wanted to answer. At the time the book was written, there was no English version.
The first was that USDC withdrawals were put on hold for a short time earlier this month. It said that this was done during a “token swap” conversion period, when the exchange combined its stablecoin reserves into BUSD.
The next thing it talked about was whether or not there were enough reserves for withdrawals. It confirmed that “all users’ assets in Binance are supported 1:1” and that the company’s finances were very healthy because transaction fees bring in a lot of money. On December 16, CryptoQuant checked Binance’s reserves and found no “FTX-like” behaviour.
“Binance won’t steal its users’ money for transactions or investments, and it doesn’t owe money and isn’t on the list of creditors of any company that just went bankrupt.”
Mazars and the “Big Four” auditing firms didn’t want to work with crypto companies because encrypted on-chain verification was a new field that these firms might not be able to handle.
It was said that these audits usually look at the company’s finances and don’t check the reserve assets.
Mazars has since taken the audit reports for Binance down from its website. Binance also said that it didn’t have to share financial information because it was a private company and not one that was publicly traded.
“In many places where we do business, we have shared or are sharing operational and financial information as required by local regulators.”
In response to a report from Reuters that said the U.S. Department of Justice was looking into the company, Binance said that the mainstream media has been going after the company with shady stories for a long time. It also said that it had the most compliance licences in the world and spent the most money fighting crypto crime.
Lastly, the blog post repeated what CEO Changpeng Zhao had said about how FTX destroyed itself, not Binance. Binance said that it doesn’t see other exchanges as competitors and that “we are more focused on promoting and growing industry adoption.”
So, now you know. The FUD has been debunked, but that hasn’t stopped investors from moving their crypto assets out of the exchange in the past few weeks.
