Binance CEO Changpeng Zhao says 100% of customer assets are fully backed one-to-one, and all withdrawals will be covered: 'We will not have an issue'
Binance
- Changpeng Zhao says users will have no issue withdrawing funds from the exchange.
- The Binance chief executive told CNBC on Thursday that his exchange backs customer assets one-to-one.
- CZ added that fractional reserve systems are "not OK."
Changpeng Zhao sought to ease crypto investors' worries about the exchange's liquidity on Thursday by emphasizing Binance's committement to honoring any customer withdrawals.
The chief executive and founder of the world's largest cryptocurrency exchange told CNBC's Squawk Box that all customer assets on the platform are backed one-to-one, either in hard or cold-storage wallets.
"People can withdraw 100% of the assets they have on Binance . We will not have an issue at any given day," CZ said. He also slammed fractional reserves, adding that it's "not OK" for crypto businesses to operate with only a portion of user funds.
"In crypto, there's no central bank printing money to bail out banks when there's a liquidity crunch," Zhao said. "Crypto businesses have to hold user assets one-to-one, and that's what we do - it's very simple."
The collapse of FTX and the ensuing criminal probe into founder Sam Bankman-Fried has added a new layer of skepticism to the crypto space and concerns over the safety of customer assets. Earlier this week, the CEO of Binance took to Twitter to shrug off concerns of heavy outflows from the exchange as "business as usual."