DeFi

Binance CEO responds to mainstream FUD: ‘They don’t know how an exchange works’

Within the aftermath of the FTX collapse, Forbes printed an article targeted on the latest “shuffling” of funds by the cryptocurrency change Binance. 

Nevertheless, the next day on Feb. 28, Binance co-founder and CEO Changpeng “CZ” Zhao took to Twitter to deal with the FUD. In response to the article, the CEO mentioned:

“They appear to not perceive the fundamentals of how an change works. Our customers are free to withdraw their property any time they need.”

In his sequence of tweets, he addressed varied claims from the Forbes article. This included a “backroom maneuver” when Binance transferred $1.8 billion in stablecoin collateral to hedge funds reminiscent of Tron, Amber Group and Alameda Analysis between August and December 2022.

In mild of the motion of funds, the article drew parallels between Binance and the now-defunct FTX within the lead-up to its demise. It additionally touched on the latest failed Voyager bid by Binance.US and america Securities and Change Fee’s deliberate authorized motion in opposition to Paxos Belief Firm — the issuer of the Binance-branded stablecoin, Binance USD (BUSD).

Associated: Circle blew the whistle on Binance reserves to NYDFS: Report

On Feb. 10, 2022, Forbes announced that Binance would take a $200 million stake within the firm as a strategic funding.

Nevertheless, in June 2022, in a follow-up report from Bloomberg, CZ mentioned the corporate’s funding settlement is “altering” after Forbes’ deal to go public fell via. In mild of the article, there was no replace on the state of affairs.

Nevertheless, in response to CZ, one Twitter consumer suggested he purchase Forbes and “delete it,” to which CZ mentioned, “not price it.”

The article from Forbes comes after the New York Division of Monetary Companies (NYDFS) ordered the blockchain firm Paxos Belief Firm to terminate its issuance of BUSD. 

On Feb. 13, it formally introduced it might not mint the stablecoins whereas giving them a redemption interval till February 2024. Binance says it nonetheless helps BUSD and is now wanting into non-USD stablecoins.

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