Comments from Binance.US Manager: Evaluated Recent Events!

Cryptocurrency The chief financial officer of the US-based arm of exchange Binance said on Wednesday that they do not lend client assets and do not mix deposits with the company’s main platform.

Binance Manager: “Even If All Our Clients Withdraw Their Assets, We Still Have Assets”

Speaking at The Wall Street Journal’s CFO Network Summit, Jasmine Lee said, “If all of our customers come tomorrow and demand their money, we still have corporate assets on our balance sheet.”

Lee also argued that the company’s “bank run”-style concept is essentially impossible.

A former PayPal Holdings Inc. Lee was appointed to lead the financial affairs of Binance.US in July, a few months before the crypto industry was thrown into turmoil by the collapse of rival exchange FTX.

FTX filed for bankruptcy after customers tried to withdraw their funds and realized that the funds were not in place.

Lee has repeatedly stated that there is a difference between his company and the bankrupt FTX: “At Binance.US, the client assets are theirs. We don’t touch, we don’t trade, we don’t lend client assets.”

Lee said that FTX’s problems are due to scams and are not indicative of problems in crypto in general.

“Everybody is interested, everybody is trying to relate what happened at FTX to crypto,” Lee said. This is not really a crypto issue,” he said.

Still, he acknowledged that confidence in the industry has been lost.

“Literally everyone is wondering who the next FTX and the next scam will be,” Lee said. This is a difficult environment,” he said, adding that the industry needs to find ways to be more transparent.

Lee explained his relationship with parent company Binance as follows:

“Obviously we bear the Binance name and we also have a licensing agreement for their technology. So that’s the extent of our relationship.

When it comes to business activities, we do not confuse customers’ assets. We do not mutually transfer our funds.”

*Not investment advice.