Binance founder and former CEO Changpeng “CZ” Zhao has directly refuted claims that the world’s largest cryptocurrency exchange intentionally delayed its monthly proof-of-reserves (PoR) report, calling recent allegations “pure misinformation” designed to spread fear, uncertainty, and doubt (FUD) in the crypto markets.
Binance’s Proof-of-Reserves Timeline Explained
In a detailed response on X, Zhao clarified that Binance consistently takes a snapshot of user balances on the first day of every month. He explained that after the snapshot, the Binance team reviews and reconciles the data, with final reports usually released between the fifth and sixth of the month.
“This timeline has always been our standard practice,” Zhao stated, urging skeptics to examine Binance’s previous PoR publications before accusing the platform of transparency lapses.
The former CEO highlighted that the exchange remains committed to demonstrating proof of customer funds, a critical measure aimed at rebuilding industry trust after multiple high-profile failures in recent years.
Community Divided Over CZ’s Response
Zhao’s clarification sparked mixed reactions within the crypto community. Many Binance supporters applauded his swift rebuttal and commitment to openness.
Others, however, argued that engaging directly with critics might give unnecessary attention to unfounded accusations and could prolong negative narratives.
Industry observers note that proof-of-reserves reports have become a key barometer of exchange solvency since the collapse of FTX in late 2022.
According to a recent Messari report, over a dozen centralized exchanges, including Binance, have adopted or enhanced PoR practices, though critics maintain that proof-of-reserves alone cannot guarantee full transparency without proof-of-liabilities audits.
Zhao Defends Binance and Endorses BNB Strategy
In addition to addressing the PoR timeline, Zhao weighed in on recent developments around Binance Coin (BNB), following news that blockchain firm Nano Labs plans to raise $500 million to build a strategic reserve composed exclusively of BNB.
Zhao hailed the move as “a green flag of confidence” in the exchange’s native token, noting that it reflects growing institutional interest in BNB despite ongoing regulatory scrutiny.
Meanwhile, Zhao has also pushed back against dismissive commentary on other major cryptocurrencies, including Bitcoin and Ripple (XRP). He called out blanket statements, labeling these networks as obsolete, arguing they ignore evolving adoption and institutional interest in blockchain solutions.
Calls for Fact-Based Discourse in Crypto
Zhao concluded his remarks by urging the crypto community to rely on facts rather than speculation when discussing platform operations. “Misinformation only fuels unnecessary panic,” he wrote. “Everyone should verify before spreading rumors.”
His appeal echoes broader concerns among analysts who warn that misinformation on social platforms remains one of the biggest threats to investor confidence in digital assets. According to a recent Chainalysis report, coordinated misinformation campaigns can lead to price manipulation, highlighting the importance of transparent communication by industry leaders.
Transparency Under the Microscope
The conversation around Binance’s proof-of-reserves comes as regulators worldwide increase scrutiny on centralized exchanges. In June, the European Securities and Markets Authority (ESMA) called for tighter disclosure requirements for crypto platforms, underscoring the urgency of transparent, verifiable reporting practices.
By addressing these concerns directly, Zhao’s comments may help reassure Binance users and reinforce confidence in the exchange’s commitment to regular and transparent proof-of-reserve reporting.
