Binance CEO Calls Out Bloomberg for Publishing Fake News About Reserves

Binance CEO Disputes Bloomberg's Report on Reserves

Binance CEO Changpeng Zhao has criticized Bloomberg for publishing inaccurate information about the company's reserves. Bloomberg reported that Binance's reserves were primarily composed of BUSD, a stablecoin. However, Zhao refuted this claim, stating that BUSD is issued by Paxos, a regulated entity under the New York State Department of Financial Services (NYDFS), and not by Binance itself.

Zhao described the report as "poop journalism" and clarified that BUSD tokens held by Binance remain in the form users deposited them, without any conversion. Bloomberg has since removed the erroneous article.

Binance Enhances Transparency Amid Industry Uncertainty

In response to recent events, including the collapse of FTX, Binance has published the balances of its cold wallet addresses to ensure transparency. The exchange holds significant amounts of Bitcoin, Ethereum, BUSD, and other cryptocurrencies. This move aims to reassure users and maintain trust in the platform.

Additionally, Zhao addressed rumors about El Salvador's potential exposure to FTX. After contacting El Salvador's president, it was confirmed that the country had no dealings with FTX.

Industry-Wide Transparency Efforts

Other major crypto exchanges, such as Coinbase and KuCoin, have also disclosed their cold wallet balances. This trend reflects a broader industry shift toward greater transparency in the wake of FTX's insolvency.

Zhao also advised the crypto community that asset brokers should avoid using self-issued tokens as collateral, emphasizing the importance of independent, auditable reserves. Binance has already taken steps in this direction, liquidating its FTX tokens after discovering that FTX's balance sheet was heavily reliant on its own FTT tokens.

By addressing misinformation and prioritizing transparency, Binance continues to strengthen its position as a trusted leader in the cryptocurrency space.