Top crypto exchange Binance has been the target of much FUD over recent weeks. In a Chinese blog post, Binance answers all its critics.
Binance has been under huge scrutiny recently, in part due to many critics who want undeniable proof that the platform has the assets it says it has, and in perhaps in part due to some who would like to see the biggest crypto trading platform in the world brought down.
Binance has sought to answer all the accusations brought against it over recent weeks with a Chinese blog post (no English version available as yet). In the post it seeks to clear up 7 key issues.
Firstly, it tackles the issue of USDC. This stable coin was temporarily suspended earlier this month. Binance said that it wanted to consolidate its stablecoins into the most liquid ones - one of these being its own BUSD stablecoin.
Next it answered the accusation that there weren’t sufficient liquid reserves for users to withdraw. Binance said that between the 12th to the 14th of December, net withdrawals had reached $6 billion, but that the exchange had withstood the test.
Even though blockchain auditor Mazars had distanced itself from its Binance audit, CryptoQuant, a data analytics platform, confirmed that the Binance reserves were at least 99% equal to what the platform said they were.
Also on the question of a suitable auditor, Binance said that it was in discussions with companies that could provide verification services. Binance maintains that even the big four auditors would not know how to audit the overall reserves of an encrypted company.
The fourth point of contention was why only BTC verification had been supplied, and why not other crypto assets? Binance said that it “takes the most cautious attitude towards all work involving user assets”.
It cited the many currencies, huge volumes, the amount of teams involved, and the money and time taken to carry out the verification process. It said that the second batch of asset verification would happen soon.
On how it had refused to disclose financial information, Binance said that by law it didn’t have to, given that it was a private company, and that it was “financially healthy, self-sufficient, no external financing needs, and no external investors, and no intention to go public at this stage.”
The sixth point was the mainstream media coverage given to Binance. As an example the exchange cited a Reuters report which contained “ambiguities”, and that readers would only see the “eye-catching headlines”.
Binance commented that it had the most approvals/licences in the world, and that it spent the most on fighting crime. It was stated that Binance had responded to 47,000 law enforcement requests since 2021.
Finally, in response to the seventh accusation that Binance had “destroyed FTX”, the exchange CEO CZ stated that “FTX destroyed itself”. He said that it had misappropriated user assets and that no healthy company can be destroyed by a tweet.
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