Changpeng Zhao: "Binance will weather any tough times"

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The CEO of the Binance exchange warned his colleagues that due to the bankruptcy of FTX, their trading platform will face difficult times and regulatory checks in the coming months.

In a written appeal toChangpeng Zhao noted that the digital asset industry is currently experiencing a historic moment. The businessman warned that the exchange faces difficult months ahead, as the recent collapse of FTX has led regulators to conduct additional checks on other exchanges, including Binance. In particular, regulators may be alarmed by the large outflow of funds from the world's largest exchange - over the past few days, more than $3 billion have been withdrawn from Binance. On December 13, Binance was even forced to briefly suspend the withdrawal of funds in USDC due to increased demand for this stablecoin.

Zhao assured his colleagues that this was onlytemporary 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.

“Rest assured, our company is built to last, and any trials will only make us stronger,” Zhao wrote in a message to his subordinates.

Last week, the auditing company Mazarsconfirmed that Binance assets are 101% backed by reserves. However, the former chief auditor of the US Public Company Accounting Oversight Board, Douglas Carmichael, doubted that the Mazars report guarantees the reliability of Binance, since the audit firm may not have conducted internal controls on the trading platform's financial reporting.

Previously, Zhao said that the FTX fiasco was solely to blame for its founder Sam Bankman-Fried, who initially lied to exchange users.