The recent market conditions have caused massive withdrawal from the leading crypto exchange of the world
Changpeng Zhao, CEO of Binance, blatantly refused the accusations of Binance not having enough funds to liquidate 100% of user funds.
Exchange in the world as Binance had to face the sudden withdrawals of 40 thousand Bitcoins in a single day.
This is one of the highest Bitcoin withdrawals that Binance had to face in a single day and investors are still withdrawing their funds from the exchange as “post-exit risk management, learning from FTT”, however, Changpeng Zhao, CEO of Binance, blatantly refused the accusations of the Binance not having enough funds to liquidate 100% of user funds.
The rally started when investors and journalists start raising questions about the sudden movement of funds from the proof-of-reserves wallets of Binance. On further scrutiny, many loopholes in the Binance proof-of-reserve reports were found. Mazars, the auditor for the proof-of-reserves of Binance also refused to share the details of the mechanism used for validating all the holding of the exchange. You can read about the details of these loopholes in this article.
On the other hand, CZ clarified that it was not the biggest withdrawal that the exchange had faced and situations were worse during the LUNA and FTT crashes. CZ also assured the users that all of their funds are 100% liquid and these situations of fear, uncertainty, and doubt can only cost some additional gas fees but nothing more. The Binance founder went far ahead in saying that such pressure situations on centralized exchanges are good for the ecosystem as they act as a litmus test.
However, no clear answers to the raised questions were given by CZ with regard to their proof-of-reserves and the stand of Mazars. Binance also did not clarify its reasons to choose Mazars as its auditor that too on his own terms. The questions are still there in the crypto space and till the time Binance users will get their answers, the FUD would not go away.
To stay updated about the future of Binance as a centralized exchange, keep following CoinGabbar.
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