• 23 July, 2024
Crypto Exchanges News

Forbes Accused of FUD Journalism as Binance Responds to Allegations

Binance CEO CZ has once again found himself battling FUD after Forbes published an article making a series of accusatory claims. The article in question suggests that Binance transferred $1.8 billion in stablecoin collateral to hedge funds, including Alameda Research, during a period that coincided with the collapse of FTX. 

The identities of the people who would benefit from the transfers are being kept secret, and it is also unclear why the transactions are being made. CZ, on the other hand, has not wasted any time in denying these allegations.

For starters, CZ points out that Forbes has misunderstood how exchanges work. Users are free to withdraw their assets at any time, which are then turned into “received hundreds of millions of shifted collateral.” 

Users are required to make an initial deposit to Binance before they are allowed to make a withdrawal, which can be tracked on the blockchain. The article, on the other hand, completely disregards the transactions involving deposits.

The article also tries to lump Binance and FTX together, including the choice of the article title, but CZ emphasizes that the two exchanges are different. Binance has stood the test of time, with users safely withdrawing billions of dollars in December.

CZ also underlines the precautions that Binance has made to safeguard the security and privacy of its users. One of these methods is the implementation of proof-of-reserves utilizing a novel zero-knowledge (ZK) technique. He emphasizes once again that Binance always retains user money in a 1:1 ratio.

CZ concludes by expressing his dissatisfaction with the fact that Forbes continues to publish pieces without any foundation, so undermining their own reputation. He observes that his Chinese ancestry has been brought up once again, as if it were of any consequence.

Vitalik Buterin Discusses the Future of Cryptocurrency Payments in Latest Blog Read Previous

Vitalik Buterin Discusses the Future of Cryptocurrency Payments in Latest Blog

Just 7 Hours Ago, Aave Whale Experienced a Dramatic Drop In Its Holdings Read Next

Just 7 Hours Ago, Aave Whale Experienced a Dramatic Drop In Its Holdings