Binance is fighting back against the recent flood of disinformation.
Binance, the world’s largest crypto exchange, has been dealing with a flood of FUD (fear, uncertainty, and doubt) since FTX’s demise. With its most recent blog post, the company is now fighting back.
Binance published a blog post in Chinese on December 22 to address seven key issues the company wanted to clarify. There was no English language version available at the time of writing.
The first was earlier this month’s temporary suspension of USDC withdrawals. This was done during a “token swap” conversion period, during which the exchange consolidated its stablecoin reserves into BUSD.
The availability of sufficient reserves for withdrawals was the next issue addressed. It confirmed that “all users’ assets in Binance are supported 1:1,” and that its financial situation was excellent because it earns a lot of money from transaction fees. On December 16, CryptoQuant verified Binance’s reserves and reported no “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 creditors list of any recently bankrupt company.”
Concerning Mazars and the “Big Four” auditing firms’ refusal to work with crypto companies, it was stated that encrypted on-chain verification was a new field that these firms might not be able to carry out.
It was noted that these audits are typically aimed at the listed company’s financial situation rather than verifying reserve assets.
Binance’s audit reports have since been removed from Mazars’ website. Binance also stated that because it is a private company rather than a publicly traded one, it is not required to disclose financial information.
“We have shared or are sharing operational and financial information as required by local regulators in many jurisdictions where we operate.”
Binance stated that mainstream media has been targeting the company with salacious reporting for quite some time now, in response to a Reuters report claiming that the US Department of Justice was investigating the company. It also claimed to have the most compliance licenses in the world and to have spent the most money fighting crypto crime.
Finally, the blog post reiterated CEO Changpeng Zhao’s remarks that Binance did not destroy FTX; FTX did. According to Binance, other exchanges are not competitors, and that “we are more focused on continuously promoting and expanding industry adoption.”
That’s all there is to it. The FUD has been debunked, but that hasn’t stopped an exodus from the exchange in recent weeks as investors moved their crypto assets to self-custody.
