Binance issues a blog post in Chinese, clearing the air about recent questions from the media and community.
Binance, the largest cryptocurrency exchange in terms of daily trading volumes, has issued a blog post responding to recent fear, uncertainty and doubt (FUD) from the media and the community.
According to the blog post issued in Chinese, Binance had received multiple questions regarding the company’s financial status, user asset security, various investigations and cooperation.
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To clear the air, Binance distinguished seven frequently asked questions and provided lengthy responses regarding each case.
The first frequently asked question was about Binance’s temporary suspension of USDC withdrawals. The company claims that the pause in USDC withdrawals was made due to the “token swap” conversion period, which was announced on September 5th. In a nutshell, Binance converted all investments made in USDC, USDP, and TUSD to its Binance USD token (BUSD).
Another claim discussed by Binance is that it doesn’t have “sufficient reserves for users to withdraw coins.” The company dismissed rumors by stating that “all users’ assets in Binance are supported 1:1,” and customers can withdraw their funds whenever they like.
Binance will not embezzle users’ funds for any transactions or investments, nor does it have any debts, nor is it on the list of creditors of any company that has recently gone bankrupt. A few negative cases do not represent the entire industry.
On top of that, Binance had discussed why accounting firms, like Mazars and Big Four, refused to work with Binance. Regarding Mazars, the company stated that the accounting firm stopped working with all crypto-related companies. On the other hand, Binance noted that for Big Four, verifying encrypted on-chain data was a new field.
Nevertheless, Binance stated that it doesn’t need to disclose its financial information because it is a private and “financially healthy, Self-sufficient” firm.
The company finished its blog post by issuing a statement regarding assumptions that Binance destroyed FTX.
FTX fell because it misappropriated user assets, and a healthy company will not be destroyed by a tweet.
Binance hasn’t issued an English version of the blog post.