Crypto exchange Binance has addressed seven instances of recent FUD targeting its operations since FTX’s collapse in a lengthy blog post written in Chinese.

Users’ Assets on Binance are Backed at a One-to-One Ratio

To begin with, Binance discussed the recent suspension of USDC withdrawals stating that the platform usually needs to convert BUSD to USDC first for large withdrawals of the stablecoin. The conversion usually takes longer since it goes through a US dollar account in a bank in New York that only operates during traditional trading hours.

Secondly, Binance reiterated that all its customers’ funds are backed at a one-to-one ratio on the exchange and that its reserves are sufficient to handle any magnitude of withdrawals.

Crypto Audits are a Very New Field

Regarding the recent audit by Mazars and its decision to halt all services to crypto exchanges, Binance explained that the ‘on-chain verification of the overall reserves of encrypted companies is a very new field.’ Therefore, they are actively communicating with other companies willing to provide verification services for encrypted companies.

Fourthly, Binance pointed out that verifying all digital assets it supports will be carried out in due time. But for now, the majors such as Bitcoin will be the first step.

Binance is a Private Company

Fifthly, the most popular exchange debunked reports that its financial details are a ‘black box’ by stating that it is a private company and only listed companies need to disclose such sensitive information. The team added that they provide Binance’s financials in every jurisdiction they operate in as part of regulatory procedures.

Binance is the Most Compliant Exchange

Concerning reports that Binance and CZ were the subjects of investigations by the US Department of Justice, the team at the exchange stated that such reports have become common and happen several times a year. However, they could not comment due to judicial reasons, as is the case with any legal investigations.

They also stressed that Binance is the most compliant exchange in the world, having obtained regulatory approvals in many countries and regions. They include but are not limited to France, Italy, Spain, Poland, Lithuania, Australia, New Zealand, Dubai, Bahrain, Abu Dhabi, Kazakhstan, etc.

The blog post also highlighted that Binance is at the forefront of fighting crime related to the industry and has ‘assembled a world-class security and compliance team comprised of experts from top investigative organisations and law enforcement agencies, which has grown by more than 500% this year alone.’

FTX Destroyed Itself — CZ

Lastly, the Binance team addressed the theory that CZ destroyed FTX by tweeting that the exchange was selling their FTT bags. The team quoted CZ’s statement that ‘FTX destroyed itself’ because it misappropriated user assets and that ‘a healthy company will not be destroyed by a tweet.’

(By John P. Njui)