Coinbase Responds To CZ’s Request

Following Binance’s acquisition of FTX, CEO Changpeng Zhao asked exchanges to make their reserves transparent to avoid a situation like FTX happening again. Coinbase soon responded to the “big brother” in the industry.

Previously, CZ stated that Binance has never used BNB as collateral and that the exchange has never been in debt. And the above statement comes after Binance and FTX reached an agreement to buy Sam Bankman-Fried’s exchange. CZ also “slightly reminds” other crypto exchanges to clarify their reserve assets.

Coinbase, one of the largest crypto exchanges in the industry, has updated its approach to transparency, risk management, and consumer protection in response to CZ’s request. It stated:

“Regardless of whether the Binance/FTX transaction completes, we have very little exposure to FTX and we have no exposure to its token, FTT. Currently we have $15 million worth of deposits on FTX to facilitate business operations and client trades. We have no exposure to Alameda Research, and we have no loans to FTX.”

The exchange also once again affirmed that its first priority is the customer, similar to the recent SBF message when the FTX incident occurred.

“At Coinbase, we’ll keep working to grow the cryptoeconomy in a safe, responsible way. And we’ll continue to do everything we can to protect our customers.”

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