Binance Claims No Debt To Reassure Users After Withdrawal Problems

After massive withdrawals in recent days, Binance has reassured users that their assets are always 1:1 and the company does not have any debt.

The largest cryptocurrency exchange in the world, Binance Holdings Ltd., sought to allay concerns about outflows by restating its belief that user assets are supported by simultaneous reserves for no debt.

A spokesman responded via email to inquiries on recent outflows and concerns about transparency by saying that people deposit and withdraw funds every day for a variety of reasons. Users’ assets on Binance are backed 1:1, and the company has a debt-free capital structure.

“People deposit and withdraw money every day for a variety of reasons. Binance users’ assets are backed 1:1, and Binance’s capital structure is debt-free. We maintain hot wallet balances to ensure we always have enough funds to meet the withdrawal requests and we top up the corresponding hot wallet balance.”

The exchange also said it is working with Mazars to share all relevant financial information with them so they can verify the accuracy of all shared data and the data extraction process of this exchange. Binance is working hard to release updated reserves for more tokens.

It seems that the FUD crisis of the largest crypto exchange in the market has passed. As today, USDC withdrawals were reopened by Binance. Through on-chain data, it can also be seen that the volume of money coming in and out on the exchange is still at a normal level. In the past 7 days, the amount of money out is $12.5 billion while the amount of money coming in is $11.3 billion.

Source: Nansen

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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