- The money of Binance customers is never combined with the company’s own.
- CZ had previously worked for Bloomberg Tradebook and the Tokyo Stock Exchange.
Users would get a refund before shareholders if Binance went bankrupt, according to CEO Changpeng Zhao (CZ). The CEO remarked a May 21st Ask me anything session. Accordingly, the AMA session has been taken down, which addressed a broad range of topics. We don’t know exactly why taken down at this time. The future of the Binance chain and how Binance handles the cash of its users were among the subjects explored.
Refund to Users First in Case of Bankruptcy
According to CZ, the money of Binance customers is never combined with the company’s own. Furthermore, he said that “The funds would be refunded to users first, before any shareholders” in the case of bankruptcy.
Binance’s decision to restart UST and LUNA trading even though the project had failed was one of several topics addressed during the Q&A session. CZ responded by saying that the decentralized world has several exchanges. Investors, he continued, would doubt our choice if we suspended trade and prices rose on rival exchanges.
CZ had previously worked for Bloomberg Tradebook and the Tokyo Stock Exchange, where he gained valuable experience. He launched Binance in 2017, and it has since become one of the world’s largest cryptocurrency exchanges.
Many cryptocurrency investors saw their investments disappear in the wake of the recent market crisis, including Binance founder Changpeng Zhao. Zhao recently tweeted that he was “poor again,” referring to his loss of billions in crypto. A month after reaching a high of $1.6 billion, the exchange’s Luna assets had dropped to only $2,200. According to Zhao, Binance has 15 million Luna tokens, which the exchange got in return for a $3 million investment in the Terra network, on which Luna is based on. The Luna tokens were “never moved or sold,” he said.
