Binance CEO Changpeng Zhao / Photo credit: Binance
Binance boss Changpeng Zhao has distanced the exchange from the now-defunct crypto giant FTX in a series of tweets.
The tweets were in response to an editorial published by Forbes that draws parallels between the recent moves of the two crypto exchange firms.
According to Forbes, Binance shifted around US$1.8 billion in assets that back users’ stablecoins and put them to “other undisclosed uses” without informing its customers.
The publication said the shift happened from August to December 2022 – around the time of FTX’s downfall. It likened Binance’s asset moves to FTX’s dealings with its sister company, Alameda Research, which led to FTX’s downward spiral.
“Binance holds user funds, 1:1, always,” Zhao tweeted. “[Forbes] seem to not understand the basics of how an exchange works. Our users are free to withdraw their assets any time they want.”
However Zhao noted that even amid the turmoil in the crypto industry, there were no difficulties in withdrawing from Binance. In December 2022, the company saw US$2 billion in withdrawals within a single day.
The Forbes’ article also comes after Coinbase announced that it will end trades for Binance USD, the stablecoin of Binance, from March 13.
Binance is an investor in Forbes, pouring US$200 million into the media giant around this time in 2022. “We look forward to bolstering Forbes’s digital initiatives as they evolve into a next level investment insights platform,” Zhao had said at the time.
See also: US stablecoin clampdown may give Japan a chance to shine
Editing by Thu Huong Le and Arpit Nayak
(And yes, we’re serious about ethics and transparency. More information here.)
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