The CEO of Binance exchange has warned his colleagues that due to the bankruptcy of FTX, their trading floor will face difficult times and regulatory scrutiny in the coming months.
In a written message to employees, Changpeng Zhao noted that the digital asset industry is now experiencing a historic moment. The businessman warned that there are difficult months ahead for the exchange, as the recent crash of FTX has seen regulators launch additional scrutiny of other exchanges, including Binance. In particular, regulators may be wary of a large outflow of funds from the largest exchange in the world – over $3 billion has been withdrawn from Binance over the past few days. On December 13, Binance was even forced to temporarily suspend the withdrawal of funds in USDC due to increased demand for this stablecoin.
Zhao assured his colleagues that these were only temporary difficulties. According to the head of Binance, the financial position of the exchange is stable, so it will be able to overcome the current problems and survive any crypto winter.
“Be sure that our company is built to last, and any trials will only make us stronger,” Zhao wrote in an address to his subordinates.
Last week, audit firm Mazars confirmed that Binance’s assets are 101% backed by reserves. However, former chief auditor of the U.S. Public Company Accounting Oversight Board, Douglas Carmichael, questioned whether the Mazars report guaranteed Binance’s credibility, as the audit firm may not have internally audited the marketplace’s financial statements.
Earlier, Zhao said that the FTX fiasco is solely to blame for its founder Sam Bankman-Fried, who initially lied to exchange users.
Source: Bits
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