This week, reporters on CNBC interrogated Binance CEO Changpeng Zhao about a halt on USDC withdrawals.
The CEO of Binance, Changpeng Zhao, was interrogated by CNBC reporters about withdrawal issues and the exchange’s viability this week.
Binance briefly halted USD Coin stablecoin withdrawals earlier this week owing to insufficient USDC balances on the platform. Zhao said that the difficulty stemmed from the fact that a New York bank it utilizes to convert Paxos-issued BUSD holdings into USDC was closed at the time.
Zhao said, “We have the assets to transform.” “There is no margin and no leverage; we just required the banks to open. When banks are closed and you want to withdraw cash, it is not possible.”
Zhao said that Binance owes no money, has no venture capital investments, and no loans. The CEO said, “We handle our funds in a very straightforward manner.”
In reference to the demise of Sam Bankman-Fried, he said, “Being bitten by one snake does not imply that all snakes are the same.”
He defended the company’s EARN program by stating that client funds are utilized to lend to other margin traders and “occasionally we run out because demand and supply don’t always line up, but the money never leaves the platform and we have margin limits.”
In addition, he emphasized that his sector is more transparent than the majority of conventional organizations and that he intends to set the bar for dependability.
Zhao said when asked whether Binance could afford to repay the $2.1 billion it earned from its withdrawal from FTX last year “Our finances are sound. Let the attorneys handle it.”
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.