Binance is in the FUD hot seat and CZ is hitting back.
Binance CEO fights FUD
Binance, the world’s largest crypto exchange, is facing a spate of public allegations that are causing “fear, uncertainty and doubt” (FUD) across multiple areas of the company.
The company has faced several headlines over the past few weeks, with some notable attention coming on December 11th and 12th alone.
A few Binance headlines from the last 24 hours:
– The US Department of Justice can charge Binance Execs with money laundering
– Binance freezes withdrawals for some accounts amid what the CEO describes as “fair market behavior.”
– Proof of Binance’s reserves raises red flags
— Genevieve Roch-Decter, CFA (@GRDecter) December 12, 2022
CZ explained recent account shutdowns for many users on December 11th.
Based on our research to date, this appears to be market behavior only. A guy deposited money and started buying. (Hackers don’t deposit). Other guys followed. I can’t see a link between the accounts. 1/3 https://t.co/QlB1VnlHVs
— CZ 🔶 Binance (@cz_binance) December 11, 2022
Just in the past week, the crypto company has also received more negative attention.
In particular, Kraken CEO Jesse Powell continued the CEX wars through multiple tweets on December 8th. Powell highlighted several red flags in Binance’s recent proof-of-reserve audit by Mazars.
ok, i’ll give you a hint. This is just the plain stuff that says this is OBVIOUSLY not traditional proof of reserves and should make real journalists dig right away.
Why Use Lending Value? Why include negative balances? No wallet signing? Who issues BTCB & BBTC? pic.twitter.com/F9u4XJ5WSi
— Jesse Powell (@jespow) December 8, 2022
Former SEC Internet Enforcement Office chief John Reed Stark has also recently used his platform to spread FUD about Binance’s Proof of Reserves and opaque leadership.
Binance’s Proof of Reserve report does not address the effectiveness of internal financial controls, expresses no opinion or conclusion, and does not vouch for the numbers. I worked at SEC Enforcement for over 18 years. This is how I define “red flag”. https://t.co/6oEqmArjS9
— John Reed Stark (@JohnReedStark) December 11, 2022
Binance CEO Changpeng Zhao (CZ) has taken to Twitter to publicly reassure users and investors. Just two days before going on the defensive with Kevin O’Leary, Binance had to hit back against Reuters’ FUD money laundering.
Others also questioned the original story that started the FUD.
How to create FUD against #Binance 101. 👇
Take news from 2018, recycle it and turn it into breaking news in 2022 as revenge for the collapse of #FTX.
If you didn’t know, #CoinDesk is owned by Digital Currency Group or those behind Grayscale who have been in trouble lately… pic.twitter.com/42anGVuARh
— Duo Nine | discord.gg/ycc (@DU09BTC) December 12, 2022
CZ eventually followed suit with encouragement to push through and “keep building.”
Overall, the FUD against Binance feels strong and genuine. Questions remain about the company’s liabilities and whether or not they failed a recent audit. CZ also monarchically revoked access for a single person for some tweets.
It was hard to imagine FTX going bankrupt. It’s hard to imagine this being the case for Binance as well. Institutions are certainly keen on crypto and Binance at this point. CZ and Binance are rightly on the defensive but need to support this by going the way with their reserves.
What is Binance:
Binance positions itself as the world’s leading blockchain ecosystem and crypto asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Aiming to increase money freedom for users, the Binance platform offers a comprehensive portfolio of crypto asset products and offerings, including trading and finance, education, data and research, social welfare, investing and incubation, decentralization and infrastructure solutions .
Where can I find Binance:
Website | Twitter | discord | Telegram |
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