CZ Cries Foul Over Forbes’ ‘FUD” Article Against Binance

CZ defended Binance’s operations, stating that users can freely withdraw their assets and deposits are traceable on the blockchain.

CZ Cries Foul Over Forbes FUD Article Against Binance

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  • Binance CEO criticizes Forbes for publishing a “FUD” article, claiming it intentionally misinterpreted facts and used negative spins to categorize Binance and FTX similarly.
  • CZ defended Binance’s operations, stating that users can freely withdraw their assets, deposits are traceable on the blockchain, and Binance holds user funds 1:1, implementing a proof-of-reserves using zero-knowledge approach for privacy and security.
  • CZ expressed disappointment with Forbes for bringing up his Chinese ethnicity and continuing to publish baseless articles that damage the publication’s credibility, after Forbes had previously announced Binance’s $200 million stake in the company as a strategic investment.

After global media giant, Forbes, published an article titled “Binance’s Asset Shuffling Eerily Similar To Maneuvers By FTX,” Binance CEO Changpeng Zhao, most commonly known as CZ, responded with a dismayed tone on Twitter, calling it a “FUD” article. 

According to the CEO, the article has lots of accusatory questions, with negative spins, and intentionally misconstruing facts. FUD, which stands for “fear, uncertainty, and doubt,” refers to a pessimistic mindset about a particular sector in the crypto industry.

As per CZ, the article’s title and storyline are “trying hard” to categorize Binance and FTX as having the same path. FTX is the infamous global crypto exchange that collapsed during the crypto winter, allegedly due to the exchange’s lack of liquidity and mismanagement of funds.

Check out the stories covered by BitPinas in relation to FTX’s fiasco

“They called out Tron, Amber group, Alameda Research, etc. They seem to not understand the basics of how an exchange works. Our users are free to withdraw their assets any time they want. Their withdrawals are turned into ‘received hundreds of millions of shifted collateral,’” CZ explained. “Our users also must deposit to Binance first to be able to withdraw, which are also easily traceable on the blockchain. The article conveniently ignores the deposit transactions.”

The CEO even mentioned the exchange’s toughness over the past years, adding that Binance users were able to withdraw billions of dollars in December, when FTX was in the middle of the fiasco:

“We implemented proof-of-reserves using a new zero knowledge (ZK) approach (suggested by Vitalik), protecting our users’ security and privacy. Binance holds user funds, 1:1, always.”

In February last year, it can be recalled Forbes’ announcement that Binance would take a $200 million stake in the company as a strategic investment. But in a follow-up report from Bloomberg in June that year, CZ said the company’s investment agreement is “changing” after Forbes’ deal to go public fell through. 

“And my Chinese ethnicity is brought up again, as if that mattered. I am deeply disappointed that Forbes continues to write baseless articles, losing their own credibility,” CZ concluded. 

This article is published on BitPinas: CZ Cries Foul Over Forbes’ ‘FUD” Article Against Binance

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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