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Binance CEO Says Customer Funds Fully Backed on Crypto Exchange

  • Crypto exchange founder says customer assets backed 1-to-1
  • Binance has been hit by a recent wave of customer redemptions
Bloomberg business news
Binance CEO Zhao Warns Bumpy Road Ahead to His Staff

Binance Holdings Ltd. Chief Executive Officer Changpeng ‘CZ’ Zhao downplayed concern about a recent wave of user redemptions from the world’s biggest cryptocurrency exchange, saying that customers could pull back all their funds without any problem if needed. 

“People can withdraw 100% of the assets they have on Binance, we will not have an issue in any given day,” Zhao said during an interview on CNBC Thursday. He noted that Binance doesn’t operate on a fractional banking system, referring to the practice by large banks through which they are allowed to lend a proportion of their customers’ deposits to borrowers. Crypto businesses should “hold user assets 1-to-1 and that is what we do.”