Binance CEO CZ: Deposits Returning but Challenges Remain

Binance CEO Changpeng Zhao says that deposits are starting to come back into the crypto exchange after a large hack earlier this year. However, he warns that the road ahead will be “bumpy” as the company continues to improve its security measures and rebuild trust with its users. In the meantime, Binance will continue to offer high-quality services and support for its customers.

According to blockchain analytics firm Nansen, Binance has seen over $3 billion in net withdrawals over the past week. However, Nansen CEO Alex Svanevik noted that the situation is not as severe as at FTX, where multi-billion dollar withdrawals were reported.

Binance has faced calls for greater transparency from investors. The company issued a proof of reserve last month, claiming to have a reserve ratio of 101% and sufficient assets to cover customer deposits.

However, critics have said that the proof of reserve does not provide enough reassurance about Binance’s collateral. The auditing firm used by Binance, Mazars, stated in its November report that the company’s proof of reserve does “not express an opinion or an assurance conclusion.” Binance CEO Changpeng Zhao said during a Twitter talk on Wednesday that the company holds user assets on a one-to-one basis and plans to release another proof of reserve in the coming weeks.

A Binance spokesperson was not immediately available for comment on the contents of this memo and the criticisms of the company’s proof of reserve.

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