Since the collapse of FTX, many amazing inside stories have gradually surfaced. Sam Bankman-Friend (SBF) embezzled FTX customer assets privately, and then bought real estate with a lot of money, and the luxury life was also brought to the bottom. In response to the exaggerated behavior of former competitors, He Yi, the co-founder of Binance, participated in the “POW’ER 2023 Hong Kong Web3 Innovators Summit” online conversation and said:
I didn’t expect FTX to be so crazy at that time. We realized the seriousness of the problem only after reading CoinDesk’s article. At that time, we didn’t know that it was simply misappropriating users’ assets. Before that, we felt that FTX was spending too much money.
As for Binance’s internal corporate governance, He Yi said that Binance’s internal controls are particularly strict, and no matter how high the employee’s position is, they are not allowed to speculate in coins, and they must be held for more than 90 days before they can be traded.
Since FTX declared bankruptcy and news of several cryptocurrency companies going bankrupt, users have become more cautious about depositing funds on exchanges. In order to make investors feel more at ease and ensure that their funds have not been misappropriated, Binance immediately began to prepare for the “Proof of Reserves”. Unexpectedly, the report was questioned as “not perfect” by the outside world, and the audit company also announced that it would stop any work with cryptocurrency companies.
In order to resolve doubts in this regard, He Yi pointed out that in the future, Binance will make public reserve certificates for most of the cryptocurrencies. She said:
Asset reserve auditing and listing financial auditing in the cryptocurrency industry are not the same thing. Listing financial auditing is another concept. At present, only Coinbase, a listed company in the industry, conducts listing financial auditing. The Big Four accounting firms are currently not very motivated to audit encrypted assets, and Binance also hopes that audit companies are willing to conduct audits.
He Yi also revealed that Binance’s $1 billion “Industrial Recovery Plan” is not a charity plan, but also returns to business. Currently, two large-scale transactions are being promoted, involving two trading platforms.