The co-founder and CEO of Binance, Changpeng Zhao, took to Twitter in response to a ‘FUD’ article published by Forbes about the exchange and its recent “shuffling” of funds.
In the aftermath of the FTX crash, Forbes published an article focusing on the recent financial “revolution” by cryptocurrency exchange Binance.
On February 28, Binance co-founder and CEO Changpeng “CZ” Zhao took to Twitter to respond. In response to the report, which he labeled “FUD”, the CEO said:
“They don’t seem to understand the basics of how the revolution works. Our users are free to withdraw their assets at any time.”
In his series of tweets, he made various comments from the Forbes report. This includes “behind the scenes” when Binance transferred $1.8 billion in direct funds to secure funds such as Tron, Amber Group, and Alameda Research between August and December 2022.
Because of the currency movement, the article made the difference between Binance and FTX endless in the time leading up to its end. He also discussed the recent failure announcement for Voyager by Binance.US and the proposed legal action by the United States Securities and Exchange Commission against the company Paxos Trust – the provider of the Binance-branded stablecoin, Binance USD BUSD ($1.00).
On February 10, 2022, Forbes announced that Binance will take $200 million in the company as a significant investment. However, in June 2022, in a follow-up Bloomberg report, CZ said the company’s investment deal was “changing” after the Forbes deal failed to go public. According to the report, there has been no update on the situation. However, in response to CZ, a Twitter user suggested that he buy Forbes and “delete it”, to which CZ replied that he “doesn’t deserve it”.
The Forbes report comes after the New York Department of Financial Services (NYDFS) ordered blockchain firm Paxos Trust to suspend BUSD operations.
On Feb. 13, it announced that it will no longer mint stablecoins while giving them a redemption period until February 2024. Binance says that it still supports BUSD and is currently evaluating stablecoins other than USD.
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