Binance Addresses 7 Incidents Of Recent FUD

Key Points:

• Since the demise of FTX, Binance, the biggest cryptocurrency exchange in the world, has had to contend with a deluge of FUD. Through its most recent blog post, the company is now retaliating.
• It was noticed that these audits often focus on the listed company’s financial status rather than confirming reserve assets.
• The blog post concluded by restating CEO Changpeng Zhao’s assertion that Binance not only destroyed FTX but also did it of its own volition.

Since the demise of FTX, Binance, the biggest cryptocurrency exchange in the world, has had to contend with a deluge of FUD. Through its most recent blog post, the company is now retaliating.

Binance issued a blog post in Chinese on December 22 that clarified seven essential points. There was no English-language version accessible at the time this article was written.

The temporary halt to USDC withdrawals earlier this month was the first of them. The exchange consolidated its stablecoin reserves into BUSD, it said and did this during a “token swap” conversion period.

The availability of sufficient reserves for withdrawals was the next issue it addressed. It affirmed that “all users’ assets in Binance are supported 1:1” and that the company’s financial situation was sound due to the substantial earnings it derives from transaction fees. CryptoQuant examined Binance’s reserves on December 16 and found no evidence of “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 list of creditors of any company that has recently gone bankrupt.”

According to the report, encrypted on-chain verification is a new industry that these corporations might not be able to handle, which is why Mazars and the “big four” auditing firms have refused to engage with crypto companies.

It was noticed that these audits often focus on the listed company’s financial status rather than confirming reserve assets.

Mazars has taken the Binance audit reports off its website

Binance added that since it was a private firm rather than a publicly traded one, it was exempt from disclosure requirements.

“In many jurisdictions where we operate, we have shared or are sharing operational and financial information as required by local regulators.”

According to Binance, the company has been the target of sensational reporting from the mainstream media for quite some time in response to a Reuters report asserting that the U.S. Department of Justice was looking into the business. In addition, it stated that it spent the most money battling cryptocurrency crime and had the most compliance licenses globally.

The blog post concluded by restating CEO Changpeng Zhao’s assertion that Binance not only destroyed FTX but also did it of its own volition. Binance stated before adding, “We are more focused on continually promoting and extending industry adoption,” that it does not view other exchanges as competitors.

There you have it, then. Although the FUD has been debunked, investors have left the exchange in recent weeks as they shifted to the self-custody of their cryptocurrency assets.

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