Binance boss tries to dispel customer concerns after drains

The CEO of Binance, Changpeng Zhao, has blamed the collapse of FTX and the fraud allegations made against his founder Sam Bankman-Fried for a wave of payments that made the world's largest cryptocurrency exchange this week.

ZHAO tried to calm nervous customers in a question-Mich-all-all discussion on Twitter that Binance is financially healthy, after customers had deducted more than $ 1 billion from the trading center, the highest daily payment since June.

"There are no lots of payouts that would put us under pressure," said Zhao.

crypto investors were nervous after a FTX payout wave turned into a “run on the bench” in early November that forced the company based on the Bahamas into bankruptcy. The US prosecutors accused the former FTX boss Bankman-Fried on Tuesday that they have staged years of fraud in order to redirect funds entrusted to the stock exchange into risky loans and investments.

On Tuesday, Brian Armstrong, Managing Director of Coinbase, also tried to assure investors on Twitter in the United States that their crypto performances were safe. "A lot of fear out there in the markets," he said. Armstrong added that Coinbase was "well capitalized" with a balance of $ 5 billion and that the assets of its customers were "secured 1: 1".

ZHAO said that Bankman-Fried's arrest due to allegations of fraud in Nassau on Monday contributed to the fact that investors deducted money from Binance. "People generalize with the arrest of SBF..

Zhao did not respond to questions from Twitter users that Binance could themselves be a goal for US authorities. Reuters reported on Monday that the company is faced with criminal investigations because of its handling of US money laundering and sanction laws in the United States. Binance said it was not appropriate to comment on a US investigation.

When asked whether he would travel to Washington DC to talk about the crypto regulation, Zhao said that he avoided visiting America to ensure a public separation between the international and the US arm of Binance to comply with US regulation. "I try not to go to the United States so that Binance [internationally] is not seen as advertising for users from the United States."

Zhao's public intervention takes place at a time when investors' fears seem to have decreased with regard to Binance. According to the analysis of the Nansen research group on public blockchain transactions, the stock exchange recorded net inflows of $ 1.4 billion last day. In the past week, investors had deducted $ 1.5 billion from the stock exchange net, said Nansen.

"There have also been some concerns about Binance and the flow of money there lately," said Nansen managing director Alex Svanevik. "It looks as if these leans that we have seen in the last 24 to 48 hours could have stopped and they see that a little deposits come back in Binance now."

Binance said that it will hold $ 60 billion in crypto assets-an disclosure that was made after the collapse of FTX in the middle of Zhao's striving for "full transparency". However, their disclosure does not include the company's liabilities towards customers, which makes it difficult to determine its financial situation.

"The proof-of-reserve audit by Binance was hardly soothing. It is essentially only a proof of assets, and we still lack the other half of the image-liabilities," said Conor Ryder, Analyst at Kaiko Data. "I do not blame anyone that he is overly careful when it comes to the exchange of rumors, since we all feel a feeling of déjà-vu to FTX."