Forbes wrote an article that Binance CEO, Changpeng Zhao (CZ), didn’t like at all. He struck back at Forbes saying they spread FUD.
Forbes accuses Binance of shuffling funds
CZ’s Twitter thread about Forbes article, source: twitter.com
Forbes compared Binance to FTX in regards to shuffling funds. Following the crash of FTX, Forbes published a story centred on Binance’s recent reorganization of its funds. CZ responded to Forbes by saying this is spreading fear, uncertainty, and doubt (FUD) about Binance.
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This is a similar situation to when Reuters accused Binance of money laundering activities on their platform. Forbes allegedly referred to old crypto transactions that clients did in the past. CZ backlashed by saying the following:
“They seem to not understand the basics of how an exchange works. Our users are free to withdraw their assets any time they want,” CZ explained.
The article compared Binance to FTX before its collapse, based on the flow of cash between the two. The article also discussed Binance’s recent failed bid for Voyager along with the SEC’s expected legal action against Paxos, the issuer of Binance’s stablecoin, BUSD.
“Our users also must deposit to Binance first to be able to withdraw, which are also easily traceable on the blockchain. The article conveniently ignores the deposit transactions,” CZ stated.
CZ fired back by saying the exchange uses proof-of-reserves through a new zero-knowledge (ZK) approach that was suggested by Vitalik Buterin, the founder of Ethereum. Indeed, Binance ranks the highest regarding the size of reserves out of all crypto exchanges.
Conclusion
CZ added “Binance holds users’ funds 1:1, always,” also expressing sadness about how Forbes handled the situation, writing “baseless articles.” If you go to the comments section of the Tweet, you may find some funny comments on the situation.
Comments on CZ’s Twitter thread, source: twitter.com
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