Tensions in the cryptocurrency community have flared again over Binance and claims regarding the transparency of the exchange's reserves. Trending messages on Twitter prompted a response from the company's founder, Changpeng Zhao (CZ).
Allegations Against Binance
Over the weekend, Hyperliquid trader James Wynn accused Binance of skipping its monthly proof-of-reserves (PoR) update, which is typically published at the start of each month. His since-deleted post read: 'BINANCE HAS STILL YET TO POST PROOF OF RESERVES‼️‼️ Binance has notoriously posted their proof of reserves on the 1st of every month!!' This message raised concerns about the company's transparency.
CZ's Response to the Rumors
CZ quickly responded to the accusations with a brief remark on Twitter. According to him, Binance takes a snapshot of reserves on the 1st of each month, but the actual report is released a few days later after verification. This process has been the standard for months. While some users appreciated the clarification, others felt CZ was giving too much attention to a post that didn’t deserve it.
The Background of James Wynn
Wynn has gained notoriety for risky trades on Hyperliquid and significant public losses, including a missed profit of $100 million. He has also been asking for donations to continue trading and previously promoted a token linked to Andrew Tate, which is now down 97% from its peak. He appears to be shifting towards loud commentary, but this time it backfired.
Though no longer CEO, CZ continues to play a key role in defending Binance's reputation. His approach to misinformation remains unchanged: correct the facts and move on.
