Binance Released A Statement In Response To FUD News About It!

Binance has issued a lengthy statement in response to “recent questions in the media and the community” regarding the company’s finances and operations following the collapse of rival cryptocurrency exchange FTX.

Binance: “A Healthy Company Can’t Be Destroyed With One Tweet”

A translated version of the article published on Binance’s Chinese blog said, “FTX has crashed because of misusing user assets, and a healthy company cannot be destroyed in one tweet.”

In the article titled “Facing FUD,” Binance responded to allegations that its financial situation was a “black box,” raised in a recent Reuters article.

The firm wrote that as it is not a publicly traded company, it “does not need” to provide detailed information about its financial situation. Binance added that it is self-sufficient and “financially healthy,” with “no external financing needs and no external investors, and no intention to go public at this stage.”

Binance’s latest attempt to reassure its clients about their finances has backfired, with audit firm Mazars pulling the stock’s proof-of-reserve assessment from its website, leaving crypto firms as clients, according to Binance.

“The company has stopped working not only with Binance, but with all crypto companies, including Binance,” the exchange protested in its latest blog post.

Noting that traditional accounting firms, including the ‘Big Four’, “found it very difficult to verify their general reserve holdings on the chain of crypto exchanges,” the company added that “verifying the general reserves of crypto companies on-chain is a very new field.”

“All users’ assets on Binance are backed at a 1:1 ratio and users also have the right to withdraw coins at any time,” the company wrote in its blog post. He explained that the delay in USDC withdrawals was due to the company’s need to convert BUSD holdings back to USDC.

In its blog post, Binance stated that it has a debt-free capital structure, funds its day-to-day operations with user transaction fees, and does not abuse user assets. It also responded to allegations that it was trying to “destroy” FTX by names like former FTX CEO Sam Bankman-Fried and former FTX spokesperson Kevin O’Leary.

“Binance will not view other exchanges as ‘competitors’,” the exchange wrote, adding that it is focused on “promoting and expanding industry adoption” and hopes to see more exchanges coexist in the crypto ecosystem.

*Not investment advice.