Binance CEO: If the Exchange Goes Bankrupt, Users Would Be Refunded Before Shareholders

Vignesh Karunanidhi
Binance CEO: If the Exchange Goes Bankrupt, Users Would Be Refunded Before Shareholders
Source: Fortune

Binance CEO Changpeng Zhao (CZ) said that if the exchange goes bankrupt, users would be prioritized for a refund before the shareholders.

CZ made the comment in a Ask me anything session conducted on May 21st. The AMA session, which covered a lot of questions from a wide array, was taken down. The reason for the takedown is quite unclear at the moment. Various topics, including how Binance controls the funds of the users, and the future of the Binance chain, were discussed.

CZ said that Binance never mixes user funds

CZ said that the funds of the users are never mixed with the operating funds of the Binance exchange. He also assured that in a situation of any bankruptcy or unforeseen events:

The funds would be refunded to users first, before any shareholders.”

Source: Reddit

In a question where a user asked whether the BNB chain will be more decentralized, CZ said:

“Honestly, I am not involved in the BNB chain decisions. My limited tech understanding is there is a trade off between number of nodes vs performance at this time of our blockchain evolution.”


Binance CEO spoke about resuming UST and LUNA trading

One of the questions asked in the AMA was why Binance decided to resume UST and LUNA trading despite knowing that it is a failed project. CZ replied that there are many exchanges in the decentralized world. He said that if we suspend trading and prices move up on other exchanges, the investors would question the decision.

“No one is forcing anyone to buy just because trading is on. There are high risk tolerance buyers willing to take over from sellers. The market place is neutral.”

CZ had previously worked at Bloomberg Tradebook and the Tokyo Stock exchange. He began Binance in 2017 and it has turned out to be one of the largest crypto exchanges globally.

Source: Binance