Despite continued assurances publicly, Binance chief executive Changpeng Zhao admitted in an internal memo that the firm will face headwinds in the coming months including heightened scrutiny.
Binance is the latest crypto giant to be placed in the spotlight following significant withdrawals and a reportedly delayed conclusion to a US investigation. In response, the firm has made reassurances that it is financially healthy and «debt free».
Despite the confidence, an internal memo reveals that CEO Changpeng «CZ» Zhao was nonetheless concerned about near-term challenges.
«While we expect the next several months to be bumpy, we will get past this challenging period – and we'll be stronger for having been through it,» according to the memo which was cited in a «Bloomberg» report.
Paused Withdrawal
On the paused withdrawals, Zhao explained that US dollar stablecoins were being retained for future use.
«With regard to questions on the temporary halt of withdrawals of USDC, because we auto convert USDC to BUSD in order to retain large liquidity pools, we generally retain USDC deposits for future withdrawals,» Zhao said in the memo.
The crypto billionaire added that Binance is facing «a lot of extra scrutinies and tough questions» on the withdrawals but assured that the «organization is built to last and will survive any crypto winter».
