Binance CEO Changpeng Zhao “CZ,” said that the exchange has no outstanding loan, and challenged anyone to ask around.
Earlier on Nov. 25, Binance publizéiert its Bitcoin proof of reserves to show that its on-chain reserves of 582,485.9302 BTC were 1% higher than the total customers’ deposit of 575,742.4228 BTC.
Leading financial audit firm Mazars in its Dec. 7 publication, confirmed that Binance’s Bitcoin reserve was overcollateralized by over 100% of its total liabilities.
Despite the auditing efforts, Binance’s reserve reports have been kritiséiert for not including its liabilities.
Bitcoin Analyst De Willy Woo had asked Binance CEO “CZ” if his exchange was working to audit its liabilities. CZ replied in the affirmative, noting that auditing liabilities are harder.
jo, mee Verbëndlechkeete si méi schwéier. Mir schëlle keng Prête fir jiddereen. Dir kënnt ronderëm froen.
- CZ 🔶 Binance (@cz_binance) Dezember 7, 2022
CZ added that Binance has no outstanding loans, and called on anyone to “ask around” to verify his claim.
Call to audit exchange liabilities
Following CZ’s comment on Binance’s liabilities, members of the crypto community have questioned why it’s harder to audit liabilities.
It’s not “harder”; it’s more revealing and incriminating.
— ᴳᴿᴼᴼᴷᴵ 𝚃𝚑𝚊 𝙼𝚘𝚗𝚔𝚎𝚢 (@Grooki2) Dezember 8, 2022
Matt argumentéiert that since Binance has no outstanding loans, its liabilities can be easily audited by leading auditing firms like Deillotte/E&Y.
Then just do it, mate. Hire Deloitte/E&Y whomever – and just do the audit with liabilities to show the full balance sheet (ie snapshot of financials for those wondering) and close the matter. It’ll cost like $100k. Well worth it in my opinion.
— Matt 🏝🔭🇨🇱🇦🇺🇺🇸 (@1mattcollins) Dezember 7, 2022
Kraken CEO Jesse Powell had earlier kritiséiert Binance for excluding its liabilities. He argued that such exclusion was an “ignorant or intentional misrepresentation” of the exchange’s financial position.
Source: https://cryptoslate.com/binance-ceo-cz-confirms-exchange-has-no-outstanding-loans/