Binance CEO CZ Responds to Kraken CEO’s Criticism of Proof of Reserves!

Some cryptocurrency Binance CEO Changpeng “CZ” Zhao introduced the Merkle Tree-based proof of reserve application after its leaders claimed that Binance’s “proof of reserves” application was meaningless.

Binance CEO Says Third-Party Audits Will Happen Too

He said Binance was committed to ensuring full legal and regulatory compliance and claimed that it did not use client funds in its own accounts.

Binance CEO continued his statements as follows:

“Producing a self-sufficient ecosystem has protected Binance clients from exposure to the kind of crisis risks we have seen in the crashes of other industry players like Celsius, Voyager and now FTX.”

Kraken CEO Jesse Powell described Binance’s “proof of reserves” system as “nonsense” as exchanges do not take into account liabilities without auditing. Binance CEO believes that Merkle Tree-based proof of reserve is the best way to validate crypto holdings.

He responded to Jesse Powell’s allegations by announcing that third-party auditors would be included in Binance’s “proof of reserves” system:

“I would like to answer the questions posed by Jesse P.,

The report has “Upcoming Plans: Involving third-party auditors to audit PoR results” to include auditors in Proof Reserve.

I’ve told the public many times, the bottleneck was that the inspectors had to wait a few weeks. We are moving forward step by step.

And there are absolutely no negative balances involved. This will be verified in audits for Proof of Reserves (PoR) above.

Actually this is the first time I hear of “negative balance” in a PoR, “Innovative”…

We welcome your questions and checks. Let’s develop together.”

CZ also said that he is in favor of even more bulls for the cryptocurrency market after the recent agendas:

“After seeing how some traditional media are handling recent events, I am more bullish on Twitter and Crypto than ever before.”

*Not investment advice.