Binance has issued a lengthy statement in response to “recent media and community questions” regarding the financial health of Binance following the collapse of rival crypto exchange FTX.
A translated version of an article posted on Binance’s Chinese blog said, “FTX fell because it embezzled user funds. Healthy companies don’t get destroyed by tweets.”
In an article entitled “Facing FUD,” Binance refuted claims that its finances are “black boxes.” Reuters article.
The company wrote that it was “not required” to disclose detailed information about its financial situation because it is not a publicly traded company. Binance is self-sufficient and “financially sound,” adding that it “has no need for external funding or external investors and has no intention of going public at this stage.”
Mazar Audit Canceled
A recent attempt to reassure customers about Binance’s financial health backfired when audit firm Mazars pulled the exchange’s margin ratings from its website and, according to Binance, excluded the cryptocurrency firm as a client. came out.
“The company [all crypto companies] Not just Binance, but Binance as well,” challenged the exchange in its latest blog post. Traditional accounting firms, including the “Big Four,” have found it “extremely difficult to verify total reserve assets on the chain of encrypted exchanges,” On-chain validation of a company’s overall reserves is a very new area.”
Earlier this month, users withdrew their funds en masse from Binance. Much of that fear stems from Binance being slow to process USDC withdrawals at the time, which has since reopened and been successfully processed.
“All Binance users’ assets are one-to-one supported, and users also have the right to withdraw their coins at any time,” Binance said. He explained that the USDC withdrawal was delayed because the BUSD held by Binance needed to be returned to USDC.
In a blog post, Binance said it has a debt-free capital structure, funds its day-to-day operations through user transaction fees, and does not misappropriate user assets. It also hit back at allegations of trying to “destroy” FTX, levied by former FTX CEO Sam Bankman-Fried, former FTX spokesperson Kevin O’Leary and others.
“Binance does not view other exchanges as ‘competitors,’” the exchange wrote, adding that it is focused on “promoting and expanding industry adoption.” He added that he hopes more exchanges will coexist.
