CZ: If Binance Goes Bankrupt, Users Would Be Refunded First Before Shareholders

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Changpeng Zhao (CZ), the CEO of Binance, who is the richest person in the crypto industry, has assured investors that if the trading platform goes bankrupt, users would be refunded first before considering the shareholders.

In a wide-ranging Ask Me Anything (AMA) session conducted on 21st May, which was taken down as soon as it was concluded, CZ discussed different topics, including Binance’s decision to resume Terra Luna trading despite its collapse, how Binance handles user funds, and the future of the Binance Chain.

Read Also: VeChain Foundation Urges Terra (LUNA) Developers to Migrate To VeChain, Offers $30,000 to Help

User Funds Are Never Mixed With Binance’s Operational Funds

According to CZ, user funds are never mixed with Binance’s operational funds. He then assured investors that in the event of any bankruptcy or similar event, “funds would be refunded to users first, before any shareholders.”

Concerning the centralized nature of the Binance Chain, CZ stated that its low validator count helps the network achieve faster transactions.

CZ Binance noted, “My limited tech understanding is there is a trade-off between a number of nodes vs performance at this time of our blockchain evolution.”

CZ’s Crypto Investment Advice

In the course of the AMA, Binance CEO also shared his crypto investment advice that he doesn’t necessarily follow.

Zhao said, “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.”

He added that he’s “all in crypto, BNB, and BTC. I use my Binance Card everywhere I go.”

Read Also: I’m Disappointed in Terra Team, Says CZ, As He Explains Why Binance Delists LUNA and UST

Changpeng Zhao, popularly known as CZ, who previously worked at the Tokyo Stock Exchange and Bloomberg Tradebook as a developer, launched Binance in 2017.

According to Forbes, CZ holds a total of 30% stake in the company and currently is the 19th richest person in the world, with a net worth of $17.4 billion.

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