- The CEO of Binance US, Brian Shroder, stated that his firm will be left with millions even if every user withdraws money.
- Shroder went on to Twitter to explain that Binance US maintains 1:1 reserves and all customer funds are safe.
- The executive claims that his firm’s reserves are subject to regular regulatory reporting and audits by government agencies.
The crypto industry is lately seeing clouds of fear and uncertainty amid the ongoing bear market, and crypto exchanges are constantly trying to convince their users of their solid reserves. Leading crypto exchange Binance US Chief Executive Officer (CEO) Brian Shroder assured users that his exchange has the capability to process every last customer withdrawal.
On Monday, Shroder went on to Twitter to explain that Binance US maintains 1:1 reserves. He added that the exchange’s reserves are subject to regular regulatory reporting and audits by government agencies. In addition, the CEO reiterated that his exchange does not offer margin products, undertake proprietary trading, or take on any kind of corporate debts.
“Binance US is well capitalized: our assets exceed our liabilities. All of our customers could withdraw their assets tomorrow, which is their right & we would still have hundreds of millions of current assets,” Shroder went on to add.
Unlike its competitors, Binance is found to be using the crypto bear market’s opportunities to expand its operations around the world.
While leading exchanges like Coinbase and Crypto.com have laid off their employees and FTX has filed for bankruptcy this crypto winter, Binance has struck several major deals, and Shroder hasn’t failed to stress the same.
He elaborated on his company’s major bid to acquire $1.02 billion worth of Voyager Digital’s assets in order to swiftly halt the collapsed crypto lender’s bankruptcy proceedings. Bitnation revealed that Binance decided to reopen bid for the crypto lender.
According to Shroder, Voyager’s 3.5 million users will soon be able to access their assets on the Binance US platform. Notably, users have not been allowed to access their accounts since July, but the company was given permission by the court to return some investor funds in August.
“We hope our selection brings to an end a painful bankruptcy process which saw customers unfairly dragged into it at no fault of their own. Our goal is simple: return users their cryptocurrency on the fastest timeline possible.”
The convincing statements by Binance US CEO comes at a time when the crypto market is suffering from the after effects of the collapse of exchange’s biggest rival FTX. The FTX’s bankruptcy lawyer claims that the exchange went insolvent due to its indulgence in several activities that Shroder listed, including margin trading with user funds at Alameda Research.
The bankruptcy filing by FTX left Voyager absent from the previous winner of the bid for its assets, which were worth around $1.4 billion in October.
“We will do everything in our power to speed up the legal and court approval process,” wrote Shroder. “Current target, pending court approvals, is to provide users access to their assets in March, 2023.”