Binance Addresses 7 Recent FUD Cases in Chinese Blog Post

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The world’s largest crypto exchange, Binance, has faced a torrent of FUD (fear, uncertainty and doubt) since the fall of FTX. The company is now fighting back with its latest blog post.

On December 22, Binance published a blog post in Chinese to address seven key issues the company wanted to address. At the time of writing, no English version was available.

The first was the temporary suspension of USDC withdrawals earlier this month. He explained that this was done during a “token swap” period as the exchange consolidated its reserves of stablecoins into BUSD.

The next thing he addressed was the availability of sufficient reserves for withdrawals. He confirmed that all Binance user assets are supported 1:1 and his financial situation is very healthy as he makes a large profit on transaction fees. On December 16, CryptoQuant verified Binance reserves, reporting that there was no FTX-like behavior.

Binance will not divert user funds for transactions or investments, nor is it in debt, or on the list of creditors of a company that has recently gone bankrupt.

Regarding Mazars and the big four auditing firms refusing to work with crypto firms, he said on-chain crypto verification was a new area that these firms might not have the capacity to carry out.

He noted that these audits generally focus on the financial condition of the listed company, not the verification of reserve assets.

Mazars has since removed Binance’s audit reports from its website. Binance also said it didn’t need to disclose any financial information because it was a private, unlisted company.

In many jurisdictions where we operate, we have shared or are sharing operational and financial information as required by local regulatory authorities.

Regarding a Reuters report claiming that the US Department of Justice was investigating the company, Binance said mainstream media has been targeting the company with salacious reporting for some time now. He added that he has the most compliance licenses in the world and spends the most to fight crypto crime.

Related: SBF faces 115 years in prison, Binances FUD and auditors quit crypto

Finally, the blog post reiterated CEO Changpeng Zhaos’ comments that Binance didn’t destroy FTX, it did it itself. Binance does not view other exchanges as competitors, he said before adding that we are more focused on continuously promoting and expanding industry adoption.

So this is it. FUD has been refuted, but that hasn’t stopped an exodus from the exchange in recent weeks as investors have shifted to self-custody of their crypto assets.

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