Binance CEO Richard Teng has confirmed that the cryptocurrency exchange is working closely with its clients following the bankruptcy of FlowBank, which stored trading collateral for Binance’s customers. Despite FlowBank’s collapse, Teng reassured that only “very little” assets were held at the bank.
The Swiss regulator announced on June 13 that FlowBank had breached its minimum capital requirements. In a Bloomberg interview, Teng emphasized Binance’s proactive communication with its customers during this period. TrueUSD also noted on June 14 that it had closed its bank account at FlowBank in April and had no exposure to the bankrupt entity.
This development follows reports from May 2023 that Binance was exploring options to allow institutional clients to keep trading collateral at a bank to minimize counterparty risk after the FTX collapse. The long-term significance of these actions highlights Binance’s strategic moves to safeguard customer assets and maintain trust in the volatile crypto market.
