Binance CEO CZ said transactions reported by Forbes were customer withdrawals, not CEX “shuffling.”
CZ: Forbes Doesn’t Understand ‘How an Exchange Works’
Binance CEO Changpeng Zhao (CZ) expressed disappointment with a recent Forbes article that accused the Centralized Exchange (CEX) of “shuffling” $1.8 billion in stablecoin collateral to hedge funds last year, “leaving its other investors exposed.” CZ responded, “They seem to not understand the basics of how an exchange works.”
CZ said that the transactions described in the Forbes article were made by Binance customers, not the CEX itself.
“Our users are free to withdraw their assets any time they want. Their withdrawals are turned into “received hundreds of millions of shifted collateral,”” he said.
CZ took issue with attempts to link Binance with Sam Bankman-Fried’s collapsed FTX/Alameda crypto empire.
“The article tries hard to categorize Binance and FTX together, including the choice of the article title,” CZ said. “We are different.”
The Binance CEO touted the CEX’s Proof of Reserve’s strategy, which includes zk-proofs, and its backing of user funds 1:1.
“And my Chinese ethnicity is brought up again, as if that mattered,” CZ said.
In response to a follower’s suggestion that he “Buy Forbes & delete it,” CZ said, “not worth it, lol…”
In February 2022, Forbes announced a $200 million investment from Binance, as part of a planned deal to take the media company public that later fell through.
What is Binance:
Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.
Where to find Binance:
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