Is the Binance the next to bite the dust or FUD?

[Z-tight]

I reckon if this continues and if a panic begins, I am afraid that Binance would decide to freeze all their users' accounts from withdrawals not because they do not have the funds, but because they want to save the exchange. One big panic is all it might take for Binance to bite the dust.

With a fractional reserve system in operation, if a bank run happens to Binance they are surely going to bite the dust, they cannot handle > 70% of their customers all trying to withdraw their money all at the same time. But with recent events involving crypto platforms, people don't panic when they can still save their funds, the panic button goes off once it is already too late, just because "it is too big to fail".

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[1714586702]

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[bbc.reporter]

@Z-tight. It appears the panic is slowly coming among people who really know what is happening. According to Fortune magazine, Binance's senior executives quit after CZ's response to the DOJ's investigation.

I want to know what was CZ's response and why this caused the most important people in charge of compliance to leave. The article is not very clear on this. Are they implying that CZ does not listen to the advice of his executives anymore?

In any case, are we witnessing FTX collapse 2.0?



Fortune has learned that senior figures, including general counsel Hon Ng, chief strategy officer Patrick Hillmann, and SVP for compliance Steven Christie, told Zhao this week they are leaving the company. Their departure follows the recent exit of Matthew Price, a former IRS agent whom Binance hired in 2021 to oversee global investigations and intelligence.

The decision by the executives to quit the company represents a management and strategic crisis for Binance at a time when it is navigating immense regulatory pressure. The situation is also likely to increase that pressure given that the departures are from legal and compliance units that deal most directly with regulators.

Binance did not immediately respond to a request for comment on the departures.

Source https://fortune.com/crypto/2023/07/06/binance-crisis-executives-quit-changpeng-zhao-justice-department/

[FinneysTrueVision]

@Z-tight. It appears the panic is slowly coming among people who really know what is happening. According to Fortune magazine, Binance's senior executives quit after CZ's response to the DOJ's investigation.

I want to know what was CZ's response and why this caused the most important people in charge of compliance to leave. The article is not very clear on this. Are they implying that CZ does not listen to the advice of his executives anymore?

In any case, are we witnessing FTX collapse 2.0?

CZ is saying on Twitter that this is all FUD. Maybe people are making too much of some of these recent departures and it could just be normal turnover, but it seems very clear to me that regulators are looking to make an example out of Binance. There are currently ongoing investigations in several countries right now so just dismissing everything as FUD does not give me ease of mind. Do Kwon and SBF also reassured the public that everything was fine before their projects collapsed. If Binance fails it would have an even greater impact than the collapse of FTX and Terra Luna.

[o_e_l_e_o]

There are currently ongoing investigations in several countries right now so just dismissing everything as FUD does not give me ease of mind.

Take a look at this post of mine from November last year: https://bitcointalk.org/index.php?topic=5419710.msg61253386#msg61253386

In that post, I link to various statements from Celsius and Voyager saying the same thing - that all accusations were FUD - that they made in the days before their collapse. I made that post in response to SBF saying that all accusations against FTX were FUD, warning people not to listen to him and to withdraw all their coins. I was obviously proven right with FTX declaring bankruptcy just a few days later.

It is a recurring pattern with centralized exchanges. Things start to look uneasy, the CEO dismisses everything as FUD and promises fUnDs ArE sAfU, and then not long afterwards they freeze all withdrawals.

No exchange is immune to same thing happening to them and no exchange is too big to fail. Get all your coins in to your own wallets before it is too late.

[bbc.reporter]

@o_e_l_e_o. I have also been seeing those type of comparisons in social media recently. Maybe 1 month ago if someone asked me if uncle Gary would be successful in taking down Binance, I would certainly answer no. Presently if asked the same question, I would be shocked if CZ gets out of this difficult situation without a fine.

However, if he is only fined and allowed to continue to operate Binance, I would consider this a victory. Pump bitcoin to $40k quickly!

[wavessurfing]

https://www.reddit.com/r/btc/comments/14v9lqn/binanceus_runs_out_of_bch_freezes_bch_withdrawals/

binance us lacks of BCH and freezes withdrawals..

[o_e_l_e_o]

https://www.reddit.com/r/btc/comments/14v9lqn/binanceus_runs_out_of_bch_freezes_bch_withdrawals/

binance us lacks of BCH and freezes withdrawals..

I mean, if anyone still didn't think Binance are running a fractional reserve system after their failed "proof of reserves" debacle, then this must be the thing that convinces you otherwise. "There's been a temporary shortage in the concentration of BCH on the BCH network"? Lmfao. What does that word salad bullshit even mean? I mean, everyone knows Bcash is a shitcoin, but it's not so shit that suddenly large amounts of it disappear from the network and cause a shortage. Lol.

This is literally Binance being caught red handed running fraction reserve, and making up complete bullshit in the hope the vast majority of users won't understand what they are reading.

[bbc.reporter]

https://www.reddit.com/r/btc/comments/14v9lqn/binanceus_runs_out_of_bch_freezes_bch_withdrawals/

binance us lacks of BCH and freezes withdrawals..

I mean, if anyone still didn't think Binance are running a fractional reserve system after their failed "proof of reserves" debacle, then this must be the thing that convinces you otherwise. "There's been a temporary shortage in the concentration of BCH on the BCH network"? Lmfao. What does that word salad bullshit even mean?

It appears there are BCH tokens issued in other networks like Binance smartchain? However agreed, this is very concerning. This is very much similar to what I have been saying before, anything in an unregulated environment that can fractionalize will fractionalize.

In any case, on my speculation that Justin Sun might save Binance, it might be the beginning hehehe. Justin Sun controls the private key that mints and issue TUSD. If this is 100% backed or not, we cannot be certain.



Binance holds almost 90% of TrueUSD after a recent spike that saw more than $2 billion of the dollar-pegged stablecoin move to the world’s largest crypto exchange.

Source https://www.dlnews.com/articles/markets/binance-controls-90-percent-of-stablecoin-trueusd-supply/

[dansus021]

It appears there are BCH tokens issued in other networks like Binance smartchain? However agreed, this is very concerning. This is very much similar to what I have been saying before, anything in an unregulated environment that can fractionalize will fractionalize.

Are they?

But yes to make binance smart chain popular Binance start to peg everything from bitcoin usdt usdc and other tokens from ERC 20 asset bring to the smart chain, tho they say it is 100% peg with real asset but sometimes depeg or the original balance less than the peg token


maybe you guys should check this website regulary https://www.binance.com/en/collateral-btokens if play with smart chain of BNB

[o_e_l_e_o]

It appears there are BCH tokens issued in other networks like Binance smartchain?

That's irrelevant, though. There will never be a shortage of tokens on Binance smartchain because Binance can and do just create more out of thin air whenever they need them. This was someone trying to withdraw actually Bcash, which revealed Binance do not have the reserves they claim to have.

maybe you guys should check this website regulary https://www.binance.com/en/collateral-btokens if play with smart chain of BNB

Binance are never going to publish numbers which show they are insolvent. Just like their "proof of reserves", they will fudge, obfuscate, and outright lie in order to appear fully backed up. But we've literally just seen proof that they are running fractional reserve, despite all these lies.

[dansus021]

Binance are never going to publish numbers which show they are insolvent. Just like their "proof of reserves", they will fudge, obfuscate, and outright lie in order to appear fully backed up. But we've literally just seen proof that they are running fractional reserve, despite all these lies.

I am also curious about a centralized exchange like what FTX did, basically Centralized Exchanges get money from fees right so why do they still use some of the user money  I mean they got a commission from every trade literally every buy and sell that happens on the exchange.

and in this case, FTX is the second biggest CeX before collapses they should have a bunch of money from transactions and other fee like withdrawal fee right?

[Rikafip]

I am also curious about a centralized exchange like what FTX did, basically Centralized Exchanges get money from fees right so why do they still use some of the user money  I mean they got a commission from every trade literally every buy and sell that happens on the exchange.

Good ol' greed, as simple as that.

Owners of these exchanges see people holding large amounts of crypto on their platform for longer period of time so then they start looking around for ways to maximize profit, which then leads to putting money to Celsius and similar shennanigans.

[o_e_l_e_o]

You will never find a centralized exchange which says "No thanks, we've made enough profits, no more profit for us". This is the sole reason they exist - to make their owners/operators money. Any service they provide to their users is simply a means to this end.

Yes, they will be making money from every trade and every withdrawal, but that's simply not enough for them. If they can gamble or invest your coins to make themselves even more money while passing all the risk on to you, then of course they will do that. That's exactly what all the recently collapsed exchanges from the last few months were doing.

[dansus021]

Good ol' greed, as simple as that.

Owners of these exchanges see people holding large amounts of crypto on their platform for longer period of time so then they start looking around for ways to maximize profit, which then leads to putting money to Celsius and similar shennanigans.

You will never find a centralized exchange which says "No thanks, we've made enough profits, no more profit for us". This is the sole reason they exist - to make their owners/operators money. Any service they provide to their users is simply a means to this end.

Yes, they will be making money from every trade and every withdrawal, but that's simply not enough for them. If they can gamble or invest your coins to make themselves even more money while passing all the risk on to you, then of course they will do that. That's exactly what all the recently collapsed exchanges from the last few months were doing.

What a crazy thing hahaha I mean some of the coin now is Proof of Stake that literally can generated more money just by sitting in Centralized Exchange wallet right they also earning from there too.

But you maybe right @Rikafip the greed is always been there

after all they are human greed is our nature 

[bbc.reporter]

You will never find a centralized exchange which says "No thanks, we've made enough profits, no more profit for us". This is the sole reason they exist - to make their owners/operators money. Any service they provide to their users is simply a means to this end.

It appears that you have not considered that competion is one of the elements in business and crypto exchanges belong to a very competitive market. If you run it like I have enough profits, you risk your exchange to be outcompeted and in time your competition might bankrupt you.

In any case, news update. Binance might be outcompeted by the next biggest exchange hehehehehe. Sam is happy with news, I reckon.



Binance lays off employees days after executive exodus

Cryptocurrency exchange Binance has cut jobs just days after it was hit by a wave of executive exits, a source familiar with the matter told Reuters on Friday.

The layoffs at the world's biggest crypto exchange come at a time when the industry's future in the U.S. market is uncertain, with regulators aggressively clamping down on what they deem are illegal activities.

The job cuts were first reported by the Wall Street Journal, which said more than 1,000 people had been let go in recent weeks.

Source https://www.reuters.com/technology/binance-lays-off-over-1000-employees-wsj-2023-07-14/

[o_e_l_e_o]

Binance are banned from multiple countries and jurisdictions. "It's just FUD."
Binance top execs quit. "It's just FUD."
Binance have to fire over 1,000 employees. "It's just FUD."
Binance are caught running fractional reserve and have to shut down withdrawals. "It's just FUD."

Don't worry. It's just FUD. Leave your coins on Binance. I'm sure it will all be fine!

[bbc.reporter]

@o_e_l_e_o. Similar to what I said to you on July 8 in this thread, before it appeared to be FUD. Presently, for certain Binance will die. The speculation is in how Binance's dominance will end. Will it be similar to FTX where we witness the imprisonment of CZ and the collapse of Binance or will Binance end like Poloniex or Bittrex and become a small exchange that everyone avoids hehehe.

Would you agree if I say that Binance will end and CZ will go to prison on 2024?

[o_e_l_e_o]

Would you agree if I say that Binance will end and CZ will go to prison on 2024?

Probably not. It wouldn't surprise me at all if Binance collapsed at any point. We already know they are running fractional reserve and they mint their centralized shitcoins out of thin air to fund their ongoing operations. Just like Celsius, BlockFi, Voyager, FTX, and dozens more, they will continue to operate and claim everything is absolutely fine until suddenly suspending all withdrawals. This could happen at any time. I think it's highly unlikely that CZ will go to jail, though. I mean, Mashinsky still isn't in jail a year on from Celsius's collapse, despite mountains of evidence of him committing outright fraud.

You mean Celsius, right?

Yes, lol. There have just been so many centralized exchanges collapse that it is hard to keep track of them all.

[Rikafip]

I mean, Mashinsky still isn't in jail a year on from FTX's collapse, despite mountains of evidence of him committing outright fraud.

You mean Celsius, right? Btw, I don't know if you missed that but he has been arrested few days ago and accused by SEC for commiting a fraud, among other things.

Alex Mashinksy, co-Founder and former CEO of insolvent crypto lender Celsius was arrested on Thursday following an investigation into the company's collapse, Bloomberg reported citing a person familiar with the matter.

The U.S. Securities and Exchange Commission (SEC) accused the firm Mashinsky of securities fraud, in a lawsuit filed Thursday. The lending platform filed for bankruptcy last July, and crypto consortium Fahrenheit recently won a bid to acquire its assets.

Bloomberg reported earlier this month that Mashinsky and Celsius may also face a suit from the U.S. Commodity Futures Trading Commission (CFTC). The report said that investigators at the CFTC concluded that the bankrupt lender and its CEO broke the regulators' rules by misleading investors.

Regarding Binance going down in 2024, I don't think that chances of that happening are high because market should look better in 2024 as its halvening year, meaning fomo and loads of fresh money going into Binance so they will be able to cover any dodgy thing that they are doing.

[bbc.reporter]

Would you agree if I say that Binance will end and CZ will go to prison on 2024?

Probably not. It wouldn't surprise me at all if Binance collapsed at any point. We already know they are running fractional reserve and they mint their centralized shitcoins out of thin air to fund their ongoing operations. Just like Celsius, BlockFi, Voyager, FTX, and dozens more, they will continue to operate and claim everything is absolutely fine until suddenly suspending all withdrawals. This could happen at any time. I think it's highly unlikely that CZ will go to jail, though. I mean, Mashinsky still isn't in jail a year on from Celsius's collapse, despite mountains of evidence of him committing outright fraud.

I disagree on CZ not going to jail. He was the trigger that caused the collapse of FTX and exposed Sam Bankrupt-Fried as a fraud. The rumor is Sam is a pet of uncle Gary and the Democratic party's boy for their moneylaundering operations. I would not be shocked if there was some truth to this because Sam's parents have some connections to the Democrats, his mother is also rumored to be close to Hillary Clinton. It is not a surprise that Sam is one of the biggest donors to the Democratic party hehehe.

In any case, there might be people in the government who will use everything in the law to witness CZ go to an American jail. This might also be seen as good for their war against China storyline.

@Rikafip. My prediction, CZ will resign or be removed as CEO and Justin Sun will buy Binance and continue to operate as a small exchange similar to Poloniex.