“We’re Areas of strength for financially” Binance’s CZ: Interview

Binance CEO CZ defends the Crypto exchange on being barbecued about withdrawal issues it confronted a couple of days back in a broadcasted interview today.

Binance’s Withdrawal Troubles

During an ongoing TV interview on Thursday, the Chief Executive Officer of Binance, Changpeng Zhao, was questioned about the exchange’s insolvency and the withdrawal difficulties faced this week.
The CEO said that their platform is financially stable and better off than any other exchange in the industry.

The stablecoin withdrawal process was temporarily suspended earlier this week due to an insufficient amount of USD Coin (USDC) reserves on the Binance website.
Zhao claims that the issue was triggered by a bank based out of New York that the company uses to exchange Paxos-issued BUSD holdings into USDC, which Zhao claims was closed at the time.

We have the assets to convert. Also, there’s no margin, there’s no leverage, we simply required the banks to open. At the point when banks are shut and you attempt to pull out money it doesn’t work.

A Strong Monetary record?

Moreover, he states that the Binance firm does not owe money to anyone and is devoid of any kind of venture capital investments or loans.

Zhao took a look at Sam Bankman-Fried and the whole FTX fiasco, saying, “Just because you’re bitten by one snake doesn’t mean that any other animal is the same.

Binance’s Earn Program

He claimed that the client funds are used as a source of credit for other margin traders while speaking about the exchange’s “Earn” program.
The demand and supply constraint of the exchange occasionally causes it to run out of funds, however, those funds never leave the platform.
Constantly monitoring the situation with margin controls was emphasized by him.

When asked if it was possible for the company to repay the money it earned from leaving FTX, Zhao said their finances were sound. The legal team will handle it.