CZ Answers Binance User Questions in 2022 Recap

Binance CEO Changpeng ‘CZ’ Zhao recently reflected on the past year in a light-hearted Twitter interview.

Binance chief dissects the thorny issues and lessons learned from the fallout of many crypto firms during the ‘tough’ year.

CZ questions the security of user assets on Binance

While many of the questions were light-hearted, including an inquiry into whether Zhao was a pseudonym Bitcoin inventor satoshi nakamoto And whether he gets enough sleep, others probed the Binance boss for assurances that funds were safe on Binance in the wake of the FTX collapse.

“We have over 100% reserves on every coin held on behalf of our users, so feel free to withdraw them at any time,” said the Binance boss. reacted full of oneself.

Centralized exchanges like Binance, Kraken, and KuCoin The Bahamian exchange has come under scrutiny after FTX filed for bankruptcy on November 11, 2022. Sam Bankman-Fried, the former CEO of FTX, allegedly loaned FTX user funds to Alameda Research, an affiliate trading firm. This withdrawal of funds deprived users of the ability to withdraw FTX’s native token, FTT, thereby breaking trust in centralized exchanges. The subsequent price drop of FTT bankrupted the exchange.

In response, several crypto firms, including Binance, conducted controversial proof-of-reserve audits to reassure customers that their funds were safe. Since then, Binance’s auditor Mazars has removed myself from the crypto space, leaving the future of crypto audits in limbo.

CZ on FTX: Don’t try to fool anyone

When asked how he would manage a crisis similar to the one unfolding on FTX, CZ said that prevention is better than cure.

“So there are some principles in business that you never violate. Never touch user funds. Keep them safe, keep them separate. run a sustainable business,” he said, adding that Binance employees “sleep soundly” because they “don’t cross ethical boundaries.”

If the damage is already done, “don’t try to fool anybody,” he quipped. CZ was first Claimed that he warned Bankman-Fried to admit his alleged crime before FTX went bankrupt.

Crypto Twitter reaction to the CZ interview showed that not everyone was enamored of the Binance boss, who has nearly 8 million followers at press time.

While ‘CZ’ expects 2023 to be a better year for crypto and decentralized finance, Twitter user Ster247 suggested that CZ and Binance capitulation is imminent as crypto will not survive stormy macroeconomic headwinds Forecast for 2023,

Others recently pointed to a lack of transparency regarding Binance’s liabilities. Proof-of-Reserve Audit Report, Investors and traders require accurate records of a company’s assets and liabilities to prove its solvency.

Also missing from the interview is any mention of the role of Binance’s exchange token BNB in ​​the health of the company’s balance sheet, among others. Said,

be for[In]crypto latest Bitcoin (btc) analysis, Click here,

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.


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