Binance Had ‘Very Minimal’ Exposure to Collapsing Crypto Lending Companies, Says CEO Changpeng Zhao
The CEO of Binance is answering questions about its risk exposure in the wake of several large crypto lenders collapsing.
In a new interview with CNBC’s TechCheck, Binance head Changpeng Zhao explains his firm’s finances have not been tangled with the recent collapses of Celsius Network (CEL) or Three Arrows Capital (3AC) without naming any names.
“We are not involved in any of the names that are public. I won’t name them, but we don’t have any loans to them, we don’t owe them any money, so we have not been involved in that.
Our name just never came up in any of those situations.”
Despite the recent cascade of negative crypto headlines, Zhao remarks that the space is rarely painted in a positive light and yet continues to grow due to its strong fundamentals.
The CEO concludes by highlighting Binance’s past experience of riding out bear markets as to why the firm is not only surviving but poised to expand in the months to come.
“I think many players have not managed their cash reserves well. For many of the players, this may be their first bear market.
We have gone through a couple of those already, so we have managed our cash well. Now we have cash reserves that allow us to do more hiring, do more investments in strong companies, and also [help] some of the companies that are cash strapped, if they’re good companies.
We are able to lower fees. We are able to launch affiliate referral programs. We actually see a lot more opportunity today than a year ago.”
In contrast, news broke this week that embattled crypto brokerage Celsius Network will offer customers the choice to “recover either cash at a discount or remain ‘long’ on crypto” as part of its bankruptcy process.
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