Binance responds to FUD: “A healthy company does not go down because of a tweet”

Binance has a long statement published in response to all media and crypto community questions about the company’s financial health in the wake of FTX’s collapse.

FTX fell because it embezzled user money, and a healthy company will not be destroyed by a tweet.

Binance is financially healthy

In the article, titled “Facing FUD,” Binance responded to allegations of Reuters that his finances are a “black box”.

Binance wrote that there is no need to disclose detailed information about its financial status as it is not a publicly traded company. Binance added that it is self-sufficient and “financially sound”, with no outside funding needs and outside investors, and no intention to go public at this stage.

Mazars stops proo-of-reserve audit

Binance’s most recent attempt to reassure customers about the state of its finances failed when the accounting firm Mazars pulled its review of the exchange’s proof-of-reserves from its website.

“Mazars stopped working with all crypto companies including Binance,” the exchange wrote in its most recent blog post. Binance also wrote that almost all traditional accounting firms, including the Big Four, do not want to venture into the verification of reserves of crypto exchanges.

Earlier this month, users massively withdrew their money from the Binance platform. This is because investors began to worry about the stock market’s reserves. However, according to Binance, these concerns are unjustified and all customer credits are covered 1 to 1. Also, customers will always be able to withdraw their assets, the exchange wrote.

All users’ assets in Binance are backed 1:1 and users also have the right to withdraw coins at any time.

“Binance has no debt”

In the blog post, Binance noted that it has a debt-free capital structure, finances its day-to-day operations through user transaction fees, and does not embezzle user assets. Changpeng Zhao, the CEO of the exchange, has also said that it is nonsense that Binance caused FTX to go under.

“Binance will not consider other exchanges as ‘competitors’”. Binance is only promoting and expanding the adoption of the entire industry. Binance also says it hopes that more exchanges will coexist in the crypto ecosystem.

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