Binance CEO Changpeng Zhao (CZ) has once again brushed off the FUD around the too-big-to-fail cryptocurrency exchange by assuring that his firm has no liquidity issues and that employee retention is still better than other companies despite these suffocating market conditions.
CZ took to the X (formerly Twitter) on Friday, September 8, to make it clear that despite a slew of recent problems like lawsuits, shutting down fiat channels, and executives departures, his child Binance has no liquidity issues at all. All assets are reserved, with deposits and withdrawals being handled without any friction.
“Let me summarize. There have been a lot of negative news/rumors, bank runs, lawsuits, closing of fiat channels, product wind downs, employee turnover, exit markets, etc. Guess what we don’t have?
No liquidity issues. All withdrawals (and deposits) are properly handled. All customer funds are #SAFU and 100% reserved.”
Saw some debates in the community. When you do the right thing, and there is FUD, you don't have to do anything. The community defends you.
Let me summarize. There have been a lot of negative news/rumors, bank runs, lawsuits, closing of fiat channels, product wind downs,…
— CZ 🔶 Binance (@cz_binance) September 7, 2023
Executive Departure is the Main FUD at Binance
As Binance finds itself embroiled in a series of legal challenges, Binance has been at the center stage of several FUD rumors, especially since the SEC lawsuit. However, the Binance community and users never reported any issues with the liquidity at the exchange. Mrvik.eth, whose tweet was reposted by CZ himself, wrote:
“I have seen many #Binance haters creating FUD in order to gain followers. Just want to ask, have you come across anyone who was or currently not able to redeem #BUSD? More than 20b$ #BUSD have been redeemed whereas #FTX failed while paying 8b$, still calling both the same.”
I have seen many #Binance haters creating FUD in order to gain followers. Just want to ask, have you come across anyone who was or currently not able to redeem #BUSD ? More than 20b$ #BUSD have been redeemed whereas #FTX failed while paying 8b$, still calling both the same
— Mrvik.eth (@0xmrvik) September 7, 2023
However, the departure of key executives is the center of the crypto community’s skepticism. Notably, at least 10 executives have left their offices between July and September alone. This executive list includes Patrick Hillmann, former chief strategy officer; Mayur Kamat, former product lead; Leon Foong, former head of Asia-Pacific; general counsel Han Ng; Steven Christie, former senior vice president for compliance, and Matthew Price, former IRS agent who served as the Global Head of Intelligence and Investigations at the exchange.
As reported, many claimed four executives resigned on July 6, citing Binance’s response to the United States Department of Justice (DOJ) investigation as the catalyst. CZ at that time confirmed these mass resignations of top executives but said that the reason “dreamed up” for their departure was completely wrong, labeling them as FUD.
Per the reports, four more executives announced their resignation this week. Confirming the departures, CZ said that many members of Binance are moving into bigger roles, some outside of Binance as well.
Some of our team members are growing into bigger roles, some outside of #Binance. Some are doing new exciting ventures. I even made intros/references for many of them. We are supportive of everyone. We are one community.
This also creates more growth opportunities within…
— CZ 🔶 Binance (@cz_binance) September 6, 2023
In his latest quest to address the FUD around these departures, CZ said that Binance has the lowest “founding team turnover of any tech startup of our size and age in the world.” He also mentioned the launch of new products, fiat channels, hires, and Binance expansion to other markets, along with recent crypto victories, probably the Greyscale and Ripple’s recent triumphs over the dreaded SEC.