Binance CEO CZ defends the cryptocurrency exchange after withdrawal issues a few days ago in an interview today.
CZ blames the issue on the closure of a New York bank that converts Paxos BUSD holdings into USDC.
Cryptocurrency exchange after being questioned about withdrawal problems it experienced a few days ago.
The Chief Executive Officer of Binance, Changpeng Zhao, well known by his stage name "CZ," was questioned about the exchange's bankruptcy and the withdrawal issues this week during a live TV interview on Thursday. The platform's CEO spoke out in support of it, claiming that it is more financially secure and well-off than any other exchange in the sector.
The Binance platform had inadequate USD Coin (USDC) reserves earlier this week, which temporarily stopped the stablecoin withdrawal process.
CZ claims that the issue was brought on by the fact that a bank in New York, which the company uses to convert BUSD holdings issued by Paxos into USDC, was closed at the time.
We have the assets to transform, CZ reportedly said. Additionally, there is no leverage or margin; all we needed was for the banks to open. When banks are closed, attempting to withdraw cash is unsuccessful.
He adds that the Binance company has no debts to anyone and has never received venture capital funding or loans of any kind.
Zhao said, making fun of Sam Bankman-Fried and the entire FTX scandal, "Just because one animal has been bitten by a snake doesn't mean any other animal is the same."
He defended the "Earn" program of the exchange by saying that the funds of the clients are used as a source of credit for other margin traders.
CZ also acknowledged that the cryptocurrency exchange occasionally runs out of money due to a supply and demand imbalance, but such funds never leave the crypto platform. He also stressed their ongoing situational monitoring and frequent margin checks.
Zhao said, "Our finances are sound," when questioned if Binance could afford to pay back the $2.1 billion it received after leaving FTX last year. The legal group will take care of it.
