Binance CEO Changpeng Zhao warns of turbulent times in crypto

Binance CEO Changpeng Zhao warns his staff about turbulent times. Due to a possible indictment from the US Department of Justice and a questionable Proof-of-Reserves report, the largest crypto exchange in the world is under pressure. This is reflected in massive withdrawals from Binance’s exchange platform, which are a true test of the trading house’s financial health.

Difficult months for Binance

Changpeng Zhao is now writing to his staff that he expects a difficult period. “Although we expect the coming months to be difficult, we will fight through this challenging period and come out stronger,” CZ said to his staff.

Yesterday, users pulled in $900 million in assets from the platform in a 24-hour period. That is, the withdrawals minus the deposits came to this amount.

“As for the questions about temporarily suspending USDC withdrawals, that is because we automatically convert USDC to BUSD to maintain large pools of liquidity.”

It is to be hoped for the industry that Binance has its accounting in order, because if this crypto exchange also collapses, public confidence will probably be over. That confidence has already been dented with the fall of FTX and the implosion of Binance would be really dramatic in that context.

CZ is confident

With the fall of FTX, there has been a kind of urge from the industry to prove to the general public that Binance, unlike FTX, is healthy. As the largest exchange platform in the market, Binance is under extreme scrutiny and that puts a lot of pressure on the platform to be more transparent.

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Binance tried that with last week’s Proof-of-Reserves report, but it was not very well received. According to critics, the evidence on Binance’s reserves was paper thin and it would be good if they hired a party that really goes through the books completely.

For the time being, however, CZ does not seem to see anything in this, because he gives little or no comment on it in a direct sense. On that note, another exciting few months are ahead for bitcoin (BTC) and the industry at large.

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