Binance user assets under custody exceed $100B

This crypto exchange Binance appears to be unaffected by the US Department of Justice's series of actions against the exchange and its co-founder, Changpeng Zhao, whose assets were arrested in 2015. As of March 18, it has surpassed $100 billion.

According to the announcement, the assets of Binance users under control have more than doubled from $40 billion at the beginning of the year. “We hold all user funds at a 1:1 ratio and additional reserves that anyone can verify using Binance's proof-of-reserves (POR) system,” Binance said, adding, “In recent weeks, we have seen remarkable and continuous progress. User assets under Binance's control A trend that has undoubtedly played a significant role in increasing the value of digital assets.

Binance's proofs currently show over 100% bond ratios for all major cryptocurrencies and altcoins. But experts caution: Reserve verifications include only half of the information relevant to reserves and do not include liabilities in calculating an entity's net equity. Binance CEO Richard Teng has since said the exchange's capital structure is “debt-free”. The exchange said:

“Please note that the aggregate figures provided by blockchain market data companies, while useful, are not a perfect representation of the amount of user funds on Binance: some of the assets included in such calculations are Binance's own operating funds. The most accurate information on user asset holdings on Binance is final.” Source is our monthly POR audit.

On March 12, Binance announced that it was severing ties with its venture capital arm, Binance Labs, despite the latter's average return on investment of more than 14x on projects and its portfolio now worth $10 billion. “Binance Labs is licensed by Binance to use its trademark but has no affiliation with the Binance cryptocurrency exchange or any related business or entity,” it said.

Related: Binance class-action lawsuit dismissed by appeals court