The Chief Executive Officer and Co-founder of Binance, Changpeng Zhao, answered a Forbes article against the exchange through Twitter.
Following the initial demise of FTX, Forbes released an article focusing on cryptocurrency exchange Binance’s previous “shuffling” of assets.
The following morning, on February 28, Changpang Zhao responded to the piece which he labeled “FUD,” by stating, “ they seem to not understand the basis of how an exchange works. Our users are free to withdraw their assets any time they want.”
Zhao addressed multiple Forbes allegations on Binance in a Twitter thread.
This involved a “Backroom manoeuvre” in which Binance moved $1.8 billion collateralization stablecoin to hedge funds, including Tron, Amber Group, and Alameda Research, between August and December 2022.
The Tweet compared Binance to the departed FTX in the run-up to its downfall based on the flow of money. The recent unsuccessful Voyager offer by Binance US and forthcoming legal action by the US SEC against Paxos Trust company was also discussed.
Following the Twitter thread, Changpeng Zhao said, “We are different” because the title of this article emphasizes the effort FUD puts into categorizing Binance and FTX together. Users can deposit and withdraw their money anytime, and their withdrawal flipped into “received hundreds of millions of shifted collateral.”
Binance adopted the proof-of-reserve to keep its users’ privacy safe. Notably, a 1:1 match is maintained between Binance and its users. In the end, Zhao was very upset with the FUD post.
