“Binance Promises User Refunds First if it Goes Bankrupt” Says CZ

“Binance Promises User Refunds First if it Goes Bankrupt” Says CZ

The CEO of Binance Changpeng Zhao (CZ) who is also a crypto billionaire, has assured investors that if the trading platform goes bankrupt, users would be refunded first before considering the shareholders.

In a wide-ranging Ask Me Anything (AMA) session held on 21st May, which was taken down as soon as it was concluded, CZ discussed several topics.

The discussion revolved around Binance’s decision to resume Terra Luna trading despite its collapse, how Binance handles user funds, and the future of the Binance Chain. 

As per CZ, user funds are never mixed with Binance’s operational funds. He also assured investors that in case of any bankruptcy or similar event, funds would be refunded to users first before any shareholders.

Considering the centralized nature of the Binance Chain, CZ stated that its low validator count helps the network achieve faster transactions. 

During the AMA, CZ also shared his investment advice which he doesn’t necessarily follow. Zhao stated, “In terms of investment, I am not a good example, I don’t diversify. I recommend most people to diversify. But for me, I am all in Binance.”

He said further that he’s all in crypto, BTC, and BNB, as well as uses his Binance Card everywhere he goes. 

Binance has been in talks about its decision to temporarily halt withdrawals of LUNA and UST tokens. Last week,  CZ and the Ethereum co-founder Vitalik showed their support for a proposal posted on Terra’s Governance forum.

It proposes paying off all UST holders in a tiered repayment structure prioritizing paying off the small holders. Now with the current statement, CZ has confirmed his intentions of prioritizing users before shareholders when it comes to Binance.

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