We can meet 100% of withdrawals, says Binance’s Changpeng Zhao
CZ dismisses concerns over whether Binance could handle a $2.1 billion withdrawal.
The CEO confirmed that the crypto exchange could meet 100% of withdrawals on its platform.
Binance has very solid revenue, CZ added.
Binance can meet withdrawals on its platform
Changpeng Zhao (CZ), the CEO of Binance, told CNBC in a recent interview that the cryptocurrency exchange has what it takes to meet 100% of its withdrawals. Binance is the world’s leading cryptocurrency exchange and has been in the spotlight recently, following the collapse of FTX.
When asked if Binance can withstand a $2.1 billion request on its platform, CZ said;
“People can withdraw 100% of the assets they have on Binance; we will not have an issue on any given day. Binance doesn’t operate on a fractional banking system.”
He added that cryptocurrency businesses should hold user assets 1-to-1, and that is what Binance does.
CNBC quoted the US bankruptcy code, which states that if bankruptcy proceedings can establish that a payment was carried out via proceedings of fraud or that an individual should have reasonably known that a payment was fraudulent, any beneficiary in a two-year lookback window can have their gains clawed back by the trustee.
When asked if Binance is prepared to send that money to them, CZ replied that;
“I think we’ll leave that to the lawyers. I think our legal team is perfectly capable of handling it. “We have very solid revenue.
Kevin O’Leary blames Binance for FTX’s crash
In a recent hearing by the House Finance Committee, Kevin O’Leary accused Binance of intentionally crippling FTX. O’Leary was a former spokesperson for the now-defunct FTX exchange. He said;
“Now, maybe there’s nothing wrong with that – maybe there’s nothing wrong with love and war. But Binance is a massive, unregulated global monopoly now. They put FTX out of business – now, lots of other reasons, I’m sure. But that’s my personal opinion.”
Earlier this week, blockchain analytics provider CryptoQuant revealed that it had verified Binance’s proof of reserve in its recently released audit report after it analysed the recently released proof-of-reserves by Binance.
The report put to bed the FUD storm that has been circulating following the recent surge in withdrawals.
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