Is Binance still blocking withdrawals ? Or customer can withdraw? He just said in the video that they hold 100 percent of customer funds. If that is the case why halt withdrawals ????
Did they ever block all withdrawals? I think they paused one stable usdc withdrawal, to perform a swap or something. After users withdrew 2bn in one day. I guess a user could have traded usdc for any other crypto and send it off. Unless you refer to some other news I am not aware of.
IIRC, the withdrawls halt was due to a particular bank in New York. Because of USDC being involved, and a limited time-window in the FIAT banking world of when transactions & settlements can occur. Or do you normally go down to a bank on Sunday morning at 4 am and seriously expect them to be still open to cash in a cheque?
Been trying to find out what exactly Binance/CZ has done for some people to call him a fraudster or scammer. This article by Bloomberg in June, 2022 seems to make some insinuations. But after reading the entire article, the only concrete thing I can seem to see is that the media (in this case, the US media) doesn't like the fact that Binance isn't fully regulated like other US companies. There are ominous mentions about the potential for money laundering, fraud and hacking but no specific crimes committed. (Paywall so if you don't have access, consider archive.vn) Can Crypto’s Richest Man Stand the Cold? This particular analgy is apropo, Ironically for a company built on a skepticism of Wall Street, Binance is more centralized than even the biggest financial institutions. Today it is, simultaneously, an exchange, a brokerage, a savings bank, a venture capital investor, a data provider, and a “shitcoin casino” operator. It is, in other words, Nasdaq, Charles Schwab, Bank of America, Andreessen Horowitz, Morningstar, and Caesars Palace, all rolled into one. So yeah, it's an unregulated firm based in the Cayman Island out of reach of the US jurisdictions much like gambling/poker sites. You know that's the risk when you place your money with them. There is no FDIC/SIPC insurance. But where is the crime like customer assets being commingled? Now of course, you run the risk of the crypto bros doing whatever the f*ck they want, as again, this is completely unregulated but I haven't seen Binance commit any crimes that would have CZ arrested. MeetKevin did a video discussing the article but again he seems to point out only the ominous tones of an unregulated firm and the potential that it has to do harm, rather than to specifically call out the existence of any crimes. When it comes down to it, all these crypto firms whether it's unregulated (Binance) or regulated (CoinBase), you are basically trusting that the crypto bros don't f*ck you.
This is the crux of the problem. How do you trust his word? SBF said the same crazy bat shit and all these people lost their precious money. Unless CZ's words can be "verified", don't be so gullible.
exactly why when I hear auditors and accountants do not understand crypto, I become very suspicious. They seem to understand Coinbase quite easily.
More fraud ahead? Well, let's have a look at the checksheet. #1 - Are there humans involved? If the answer to #1 is Yes, then Due diligence is strongly suggested. Next... If you like the new pandemic / loot mask, call for yours at BR-549.
The reason why a customer who deposited USDC could not withdraw USDC is because Binance converts deposits of USDC into BUSD and then has to convert BUSD back to USDC (and blames a bank for the problem). https://www.reuters.com/technology/binance-convert-users-usdc-into-its-own-stablecoin-2022-09-05/
There is NO GOOD REASON why a company would set up shop with Cayman Islands as the location of its head office. Binance is actually worse, because they apparently don't even HAVE a location for their head-office. Now, if YOU or I did that, we'd get into trouble for tax-evasion so fast your head would spin. Not the multi-billion dollar companies though. Now you see why they are banned from North America. There has been talk that Binance was going to buy out Netcoins to get a foothold in Canada through ownership of that regulated exchange. But I'm not so sure now that would have worked, if what O'Leary talks about being true... with FTX running into regulation issues itself because Binance owned 20% equity. By the way, O'Leary's strategic investment into the conglomerate WonderFi is interesting. If you look at older videos that haven't yet been scraped off the internet, you'll hear talk how SBF is a backer of WonderFi, and he is a believer in WonderFi, etc. Not surprisingly, that stuff has vanished. Now when you do your due diligence, the only talk they mention of him is some notice to investors that there is NO contagion exposure to FTX/Alameda.