Investors get BRL 4.37 billion from Binance after lawsuit, CEO responds

After the CFTC sued Binance this Monday (27), the Changpeng Zhao exchange processed the equivalent of BRL 4.37 billion in cryptocurrency withdrawals.

However, the amount does not seem to worry CZ. Through his social networks, the founder of Binance recalls that his exchange processed $3 billion in one day after the collapse of FTX.

As for reserves, Zhao points out that Binance has US$64 billion (R$329 billion). That is, despite the legal problems, there is no sign of insolvency.

Furthermore, it’s hard to imagine the US government having any motivation to make processing cryptocurrency withdrawals difficult, no matter which way the process goes.

Binance CEO reacts to hasty withdrawals on his exchange

Changpeng Zhao, also known only by his initials, CZ, was calm about the recent mass looting. In comparison, he noted that the amount is lower than the amount processed after the FTX crash and, more recently, with the banning of its stablecoin, Binance USD (BUSD).

“Binance On-Chain Balance is $64 Billion, Nansen Data Shows”wrote the founder of Binance this Wednesday (29) pointing to an article from CoinDesk. “Blockchain is transparent. Binance processes billions of deposits and withdrawals every day. We saw a little net outflow yesterday, less than the “BUSD” or “FTX” days.”

Binance’s On-Chain balance stands at $64 billion, according to data from Nansen.

Blockchain is transparent.#Binance processes billions in both deposits and withdrawals daily. We saw a little bit of net outflow yesterday, smaller than “BUSD” or “FTX” days. https://t.co/KFU4twVPiR

— CZ 🔶 Binance (@cz_binance) March 29, 2023

CZ retweets an analysis from Nansen and acknowledges that Binance has processed $852 million in the past 24 hours. In the message there is also a provocation for the banking sector, which, because it works with fractional reserves, cannot properly deal with such events.

“Binance processed a net outflow of $3 billion in one day last December – not even many traditional companies can”points the Nansen’s text shared by Binance’s CEO. “Approximately $852 million net outflow from Binance in 24 hours.”

Finally, another factor that may have contributed to these withdrawals was the unexpected bug on Binance. Last Friday (24), before the CFTC process, the brokerage paused trading, deposits and withdrawals for over an hour until the issue was resolved, causing alarm in the market.

Critics are taking advantage of the turmoil to criticize Changpeng Zhao

Nouriel Roubini, aka Dr. Doom criticized CZ earlier last year at an event in Abu Dhabi. On the occasion, Roubini said Zhao “shouldn’t be there”, stating that the billionaire was under investigation by the US.

With Binance being sued by the CFTC, the economist is taking advantage of the moment to attack Binance’s founder.

“The Manchurian Candidate”wrote Roubini, calling Binance’s CEO a puppet of the Chinese government. “Binance hid extensive ties to China for years. Company documents show the cryptocurrency exchange depended on the country long after it said it left [de lá] in 2017.”

The Manchurian Candidate…

Binance hid extensive links to China for years
Company documents show crypto exchange depended on the country long after it said it left in 2017https://t.co/2kHkOz1Dw6

— Nouriel Roubini (@Nouriel) March 29, 2023

In another tweet, Dr. Doom shared a story about Bitcoin’s rise in recent weeks. “Constant market manipulation in the crypto world”wrote the economist, believing the rise was programmed and that Binance was already aware of the process. “Completely criminal company”rounded.

Constant market manipulation in cryptoland. Total criminal enterprise https://t.co/5j2KuJapO8

— Nouriel Roubini (@Nouriel) March 28, 2023

Ultimately, Binance’s dominance in the market continues to grow and the CFTC lawsuit is an event closely watched by critics and cryptocurrency enthusiasts alike.