Binance responds to multiple questions from the media and the community: There is no liquidity issue

ChainCatcher news, Binance published a blog post responding to recent media and community doubts. Regarding the issue of the temporary suspension of USDC withdrawals, Binance stated that users' USDC and other stablecoin balances and new deposits will be automatically converted to BUSD at a 1:1 ratio. When there is a large-scale withdrawal of USDC, the platform needs to first convert BUSD back to USDC. The conversion between PAX/BUSD and USDC needs to be done through a dollar account at a bank in New York, USA, and can only be processed during the bank's business hours, which has caused delays in conversion.

Regarding whether Binance has sufficient reserves for users to withdraw funds, Binance stated that all users' assets on Binance are supported 1:1, and users have the right to withdraw funds at any time. Binance will not use users' funds for any trading or investment, nor does it have any borrowing debts, and it is not on the creditor list of any recently bankrupt companies.

In addition, Binance also responded to topics such as "Mazars and the Big Four accounting firms refusing to serve Binance," "only launching verification for BTC," and "whether Binance destroyed FTX." (Source link)