Binance CEO Warns Employees of Catastrophic Times
- Binance CEO Changpeng Zhao has warned his colleagues of turbulent times for crypto space in the coming months.
- “While we expect the next several months to be bumpy, we will get past this challenging period,” Zhao stated.
- The crypto exchange’s head also asked employees to “rest assured” as “this organization [Binance] was built to last.”
- The statement comes at a time when the exchange witnessed $3.8 billion in net withdrawals in the past few days.
The CEO and co-founder of the world’s biggest crypto exchange, Binance, Changpeng Zhao, also known as “CZ” in the crypto space, has written a memo to his employees following a huge amount of outflows that the platform witnessed in the last 24 hours over rumors of investigations, insolvency, and misreporting of data. Interestingly, the firm continues to operate smoothly despite the rumors circulating the industry.
According to a report from Bloomberg, the Chief Executive Officer gave a warning to his colleagues to expect some of the toughest times in the coming months for the crypto industry. The Binance co-founder also added that the exchange will successfully fight off these difficult times of uncertainty and FUD and therefore, in a way, assure the company’s employees of its financial health.
The collapse of Sam Bankman-Fried’s collapsed crypto exchange FTX has left the crypto space in shambles, and almost every crypto investor has felt the effects of the same in some way or another. Therefore, in times like this, investors are worried about their money deposited in centralized exchanges, and as a result, Zhao’s words are an attempt to soothe the employees as well as investors.
“While we expect the next several months to be bumpy, we will get past this challenging period—and we’ll be stronger for having been through it,” he wrote in the memo seen by Bloomberg. He further added that the collapse of FTX brought “a lot of extra scrutiny and tough questions” on his firm including the recent rumors of Binance not being liquid enough and having issues with its proof of reserves report.
“Rest assured, this organization was built to last,” Binance CEO Changpeng Zhao said.
Binance Recorded Heavy Withdrawals This Week
Binance recorded heavy withdrawals from its platform on Tuesday due to the uncertainty regarding its assets and liabilities. Although the firm took the initiative of undergoing an audit of its proof of reserves report with the help of international audit firm Mazars, a rumor in the crypto community caused “FUD,” which resulted in the heavy withdrawals. It was reported that the proof of reserves had some issues with it, which was the spark for the fire.
As reported earlier by Bitcoinwisdom, it was verified by Mazars that the Bitcoin (BTC) reserves of Binance are collateralized by 101%, which basically means that the exchange has more BTC in its holdings that its liabilities/customer assets, which currently amount to a value of 575,742 BTC.
Despite the huge outflow of assets from Binance, the CEO stated that the exchange remains operational as usual. “If an exchange holds users’ assets as is, no amount of other people’s tweets will cause problems. Simple,” CZ said when investors suffering from FTX crash and the crypto community was skeptical of the current status of the exchange.
There was also a rumor stating that the exchange was being investigated by DoJ and half of the prosecutors want to move ahead with criminal charges against Binance and its executives, including Zhao. This report was, however, refuted by CZ in a Twitter post.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
