Binance issued a lengthy statement in response to “recent media and community inquiries” regarding the company’s financial health following the collapse of rival cryptocurrency exchange FTX.
The translated version of the article published on Binance’s Chinese blog reads: “FTX fell because it siphoned off user resources, and a healthy company won’t be destroyed by a tweet.”
In an article titled “Facing Chaos,” Binance responded to allegations that its finances are a “black box” raised in a recent Reuters article.
The company wrote that it “does not need” to disclose detailed information about its financial situation because it is not a publicly traded company. Binance added that it is self-sustaining and “financially sound” with “no need for external funding, external investors, and no plans to go public at this point.”
Binance’s Mazars Audit’s latest attempt to reassure clients about the state of its finances backfired when Mazars Audit withdrew its assessment of the trading platform’s reserves from its website and, according to Binance, dropped crypto firms as clients .
“The company has stopped working with all crypto companies, including Binance, not just Binance,” the exchange replied in its latest blog post. He noted that traditional accounting firms, including the “Big Four”, find it “extremely difficult to verify total reserve assets on a chain of digital trading platforms,” adding that “cross-verifying digital firms’ total reserves is a ‘very new area.’
Earlier this month, users massively withdraw their funds from Binance. Much of this fear stemmed from Binance’s delay in meeting USDC withdrawals at the time, which have since resumed and are being processed normally.
“All user assets on Binance are supported 1 1, and users also have the right to withdraw at any time,” Binance said. You explained that the delay in USDC withdrawals was due to Binance having to convert its holdings from BUSD to USDC.
In the blog post, Binance indicated that it has a debt-free capital structure and funds its day-to-day operations through user transaction fees and does not misuse user assets. He also responded to allegations that he sought to “destroy” FTX enforced by the likes of former FTX CEO Sam Bankman-Fried and former FTX spokesman Kevin O’Leary.
The exchange wrote that “Binance will not view other trading platforms as ‘competitive’; Adding that he is focused on “promoting and expanding industry adoption” and hopes to see more trading platforms coexist in the cryptocurrency ecosystem.
