Just In: CZ Says Binance Protects Users Before Shareholders
Binance on Monday made a clarification to its users in the backdrop of a recent disclosure by another top exchange Coinbase. At the time, widespread debates emerged around safety of investor funds. The disclosure suggested that if Coinbase were to go bankrupt, it could treat its customers as ‘unsecured creditors’.
However, Coinbase’s chief financial officer Alesia Haas later said all investor assets are ‘absolutely safe’. “There is a very small tail risk that it still could happen,” she said. The doubts were centered around the possibility that courts could force Coinbase to divert customer money to its creditors.
Haas added at the time that there was no risk of a possible run on Coinbase. Legal protections are clearly stated in the terms of service with the customers, she added.
Binance User Safety
Changpeng Zhao, shortly called CZ, the chief executive officer of Binance, assured investors about safety on the platform. In a recent interview, he said,
“If the trading platform goes bankrupt, users would be refunded first before considering the shareholders. Binance User funds are never mixed with operational funds. In the event of any bankruptcy or similar event, funds would be refunded to users first, before any shareholders.”
‘Faster’ Binance Chain
CZ said the low validator count of Binance Chain helps the network achieve faster transactions, when asked about its centralized nature. “My limited tech understanding is there is a trade-off between a number of nodes vs performance at this time of our blockchain evolution.”
When asked for investment advice, the Binance CEO said he is not a good example as his portfolio is not diversified.
“Investment wise, I am not a good example. I don’t diversify. I recommend most people to diversify. But for me, I am all in Binance. I am all in crypto, BNB, and BTC. I use my Binance Card everywhere I go.”
In a separate development, Binance had earlier on Monday enabled the direct selling of crypto for fiat through its debit and credit cards.
- Tom Lee’s BitMine Adds $820M Worth of Ethereum as ETH Rebounds
- Crypto Crime Hits $2.47 Billion in H1 2025, With Wallet Hacks on the Rise
- ASTER Token Rockets Over 10% in an Hour as Binance Announces Spot Listing
- Whale Dumps Massive $55 Million in XRP to Ripple as Coin Falls Below $3?
- Aster Token Crashes 10% On DEX Integrity Issues Ahead of Airdrop, What’s Happening?
- Bitcoin Price Prediction as Exchange Reserves Hit 6-Year Low—Is $150K Within Reach?
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
