Companies
Binance CEO Changpeng Zhao Blasts Forbes Over FUD Article
Binance CEO Changpeng Zhao (CZ) expressed disappointment at Forbes news agency over a FUD-filled article published on Feb. 27, indicting Binance exchange of shuffling of funds as per a post.
I am deeply disappointed that Forbes continues to write baseless articles, losing their own credibility.
9/9
— CZ 🔶 Binance (@cz_binance) February 28, 2023
CZ remarked that Forbes was primarily concerned with spreading fear of doubts and uncertainty, stressing that the article was loaded with accusatory questions with negative spins, intentionally distorting facts.
I am reluctantly spending time on FUD again (4). Forbes wrote another FUD article with lots of accusatory questions, with negative spins, intentionally misconstruing facts. They referred to some old blockchain transactions that our clients have done. 1/9
— CZ 🔶 Binance (@cz_binance) February 28, 2023
According to a Forbes article released on Feb. 27, Binance engaged in shuffling of funds as well as backroom manoeuvre by reportedly transferring $1.18 billion in stablecoin collateral to hedge funds such as Tron, Amber Group, and others.
Meanwhile, CZ denied the claim arguing that Forbes seems not to understand the basics and operational principles of crypto exchanges. He asserted that users have the right to withdraw their assets anytime they want.
They called out Tron, Amber group, Alameda Research, etc. They seem to not understand the basics of how an exchange works. Our users are free to withdraw their assets any time they want. Their withdrawals are turned into “received hundreds of millions of shifted collateral.” 2/
— CZ 🔶 Binance (@cz_binance) February 28, 2023
The article also referred to the failed Voyager bid by Binance.US and the United States Securities and Exchange Commission’s decision to clampdown on BUSD issuer company Paxos, claiming that Binance could not be exonerated in all these.
Until now, Binance had been on good terms with Forbes as it was reported on Feb. 10, 2022, that the exchange would secure a $200 million stake in the company as a form of strategic investment.
The proposed deal later fell apart in June after the decision by Forbes to go public fell through.
Status Quo of Binance Exchange
Amid a series of hues and cries against Binance, the crypto exchange has reiterated its commitment to continue to support the embattled stablecoin BUSD despite the New York Department of Finance Services (NYDFS) ban on Paxos.
Binance, according to the Wall Street Journal report of Feb. 15, is bracing up to pay penalties in an effort to settle U.S. investigations as regulators beam searchlight around the exchange’s past policy violations.
Already, the Kraken crypto exchange recently paid a $362,000 fine to the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) following an indictment on civil liability.
More than any other time, crypto exchanges should adhere to statutory rules and regulations and also provide necessary clarity when situations warrant.
