Binance’s CZ: users before shareholders

During the Ask Me Anything session on Reddit, the CEO of Binance promised that users would get refunds before shareholders in case of the exchange’s bankruptcy.

A stock photo of a piggy bank wearing a lifebelt on waves.

“User funds are kept separate from the exchange's operating funds. And, if this were to happen, funds would be refunded to users first, BEFORE any shareholders. Funds are SAFU,” CZ assured Redditors, referencing the popular crypto slang term used by exchanges to let users know that their assets are safe. SAFU also stands for Secure Asset Fund for Users, an emergency insurance fund Binance established in July 2018 to protect customers’ investments.

“Moving all my funds from Coinbase to Binance then,” a Redditor dubbed Mau120 commented on CZ’s statement.

Earlier this month, Binance’s closest rival, Coinbase, announced that users’ funds could become inaccessible in case of bankruptcy after its shares plunged 50% since May 4. The exchange noted that “the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings.” Following the announcement, many users started moving their crypto off Coinbase.

CZ also shared his investment advice, though he admitted he doesn’t follow it himself. “Investment wise, I am not a good example. I don’t diversify. I recommend most people to diversify. But for me, I am all in Binance.” Zhao then added that he’s “all in crypto, BNB, and BTC. I use my Binance Card everywhere I go.”