Several high-ranking employees have recently left the Binance cryptocurrency exchange. They included general counsel Hong Ng, chief strategy officer Patrick Hillmann, and senior vice president of compliance Stephen Christie. So is everything okay at Binance?
Reductions in senior positions have raised concerns about the state of the crypto exchange, which is currently embroiled in a legal dispute with the US Securities and Exchange Commission (SEC). However, Binance CEO Changpeng Zhao continues to reassure customers and investors. He commented on negative rumors about his company via X (Twitter).
Binance Boasts Best Liquidity in Market
Kaiko analysts analyzed the state of the eight largest exchanges in the digital assets industry. As you can see in the chart below, the position of the leading trading platform represented by Binance looks good.
The platform, led by Changpeng Zhao, accounts for 64.3% of total trading volumes and 30% of total market depth. Market depth refers to the amount required in a position that will change the exchange rate of a given asset by 1%. Binance can, therefore, boast the best liquidity in the industry.
Click here to read our Binance exchange review.
Changpeng Zhao Highlights Binance’s Recent Ups and Downs
In his post, Changpeng Zhao highlighted the continued performance of the Binance platform against all odds:
“There was a lot of negative news and rumors, lawsuits, closing of funding channels, product development, staff turnover, exit scams and so on. Guess what we don’t have? No problems with liquidity. All withdrawals (and deposits) are handled correctly. All customer funds are safe and secured 100%”
Recall that the collapse of the FTX cryptocurrency exchange occurred precisely when the platform could not cope with the influx of withdrawals of digital assets. Therefore, the company’s management tried to attract liquidity from its competitors – including Binance.
Crypto enthusiasts are now afraid of a repeat of a similar situation with Binance, although there is generally no reason for this.
But the problems don’t end there. On Aug. 31, Binance announced that it was ending support for the BUSD stablecoin. This is the logical conclusion following the SEC’s prolonged pressure on Paxos, the token-issuing company.
Also, a few days ago, it became known that the Binance non-fungible token (NFT) platform will stop supporting unique tokens based on the Polygon network by the end of the month. After this time, it will only allow interaction with NFTs based on Ethereum, BNB Chain, and Bitcoin.
Binance is the subject of multiple investigations by regulators around the world. In March, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against the company for violating derivatives trading rules.
In June, Binance entered into litigation with the SEC over allegations of trading in unregistered securities and allegedly using customer funds to enrich the platform’s executives personally.
Of course, under such circumstances, Zhao has to reassure his followers more and more often. Many fear that Binance will end up like FTX, whose collapse led to a sharp collapse of the digital asset market.
Click here to learn about the 7 best Binance alternatives for 2023.
Binance experienced multi-billion dollar withdrawals in a matter of days in late 2022 amid panic. However, the exchange coped with this problem. In this case, the platform has proven in practice that there are no liquidity problems. And this means much more than gossip on the Internet.
11,000 Years Jail for Thodex Founder
Moreover, Changpeng Zhao’s position is definitely better than that of Faruk Fatih Ozer, the founder of the Turkish cryptocurrency exchange Thodex.
On Sunday, Ozer was sentenced to 11,196 years in prison, which means the fraudster will remain behind bars for the rest of his life. He was found guilty of aggravated fraud, running a criminal organization, and money laundering.
Two other close relatives of Ozer who helped him run the stock exchange were sentenced to similar sentences. They were also fined 135 million Turkish liras, or about $5 million.
Thodex was founded in 2017 and was the largest cryptocurrency exchange in Turkey before its collapse. Unfortunately, the scammers’ actions left 400,000 users without access to their cryptocurrencies, worth approximately $2 billion in total.
Initially, Ozer attributed the exchange closure to an interruption related to a large outside investment, allegedly requiring a break in trading for four to five days.
But a day later, Ozer changed his story. He stated that the reason for the suspension of trading was a cyber attack, while customer funds were allegedly safe at the time. After the final collapse of the stock exchange, Faruk Fatih Ozer disappeared, fleeing to Albania.
Do you have anything to say about Binance, Changpeng Zhao, Thodex, or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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