By Tom Blitzer
Key Insights:
- Binance US calms BCH FUD and attributes the withdrawal halt to a technical glitch.
- Cochran questions Binance’s intentions and demands transparency and proof.
- Binance CEO’s silence adds fuel to controversy amid regulatory scrutiny.
Binance.US, the American division of the renowned cryptocurrency exchange, recently became involved in a controversy concerning Bitcoin Cash (BCH). Adam Cochran, the prominent founder of the venture capital firm Cinneamhain Ventures (CEHV), notably criticized Binance.US and its CEO Brian Shroder for their silence amid the ongoing situation.
Binance.US’s BCH Saga: Fact vs. FUD
Earlier this week, customers experienced an unexpected halt in BCH withdrawals. However, Binance.US reassured its users that the pause was due to a “technical issue” within the deposit sweeping system. Moreover, the platform confirmed that this glitch impacted no other tokens. Consequently, BCH withdrawals were temporarily suspended until the technical mess was rectified, and regular deposit, hot, and cold wallet flows resumed. Significantly, the platform announced the resumption of complete BCH withdrawals by Sunday night, reaffirming the security of their customer’s assets.
Binance.US, in a formal Twitter post, affirmed, “In an environment where uncertainty, doubt, and fear propagate rapidly, we want to stress that Binance.US was founded to serve U.S. consumers, and it operates in strict compliance with U.S. regulations. You can remain confident that your assets are protected and secure, and such spreading doubts can’t alter this fact.”
Cochran’s Confrontation and the Call for Proof
However, Adam Cochran, a vocal critic of Binance, took to Twitter on July 11, expressing skepticism towards the exchange’s reassurances. Besides denouncing Binance for its recent listing of the BCH/TUSD and CFX/TUSD trading pairs at no cost, Cochran also compared Binance.US to a “Ponzi scheme” with a “hole across multiple assets.” He asserted that the platform was unethically handling customers’ assets without consent.
Consequently, Cochran challenged Binance.US to validate its refutation of the FUD. He stated it should be “an easy thing to prove,” and called on the platform to post the relevant wallet, allowing the community to view when the issue was resolved.
Cochran highlighted CEO Brian Shroder’s notable absence from Binance US for the past five months. This follows the SEC’s allegations linking Binance founder Changpeng Zhao to Binance US operations. Shroder, however, has stayed silent on these claims. Cochran asked, “Why hasn’t your CEO been around for 5 months?”
Hence, while Binance.US has attempted to dispel the BCH FUD, Cochran’s push for transparent evidence has cast a shadow over their assertions. As the situation evolves, all eyes will undoubtedly remain on Binance.US and its response to these pressing demands for clarity.