Crypto Twitter reacts to Binance CEO’s deleted tweet about Coinbase’s Bitcoin holdings

Coinbase was trending on Twitter on November 22 after Binance CEO Changpeng Zhao, also known as CZ, posted a tweet questioning Coinbase’s Bitcoin (BTC) holdings.

In a since-deleted tweet, CZ referenced a Yahoo Finance article that claimed to “hold 635,000 BTC on behalf of Coinbase Custody Grayscale.” CZ added, “4 months ago Coinbase (I think the exchange) is less than 600K,” adding a link to Bitcoinist’s 4-month-old article. The Binance CEO clarified that he was merely referring to “news reports” and was not making any claims. However, his tweet was not well received by the cryptocurrency community.

Screenshot of CZ’s deleted tweet.

Shortly after, Coinbase CEO Brian Armstrong indirectly responded to CZ in a series of tweets: “If you’re seeing FUD out there, remember our financials are public (we’re a public company),” with a link to Coinbase’s Q3 shareholder. letter. He revealed that his company has “~2M BTC. Worth ~$39.9 billion as of September 30 (see 10Q).

CZ deleted his tweet shortly after, noting: “Brian Armstrong just told me the numbers in the articles were wrong. The previous tweet has been deleted. Let’s work together to increase transparency in the industry.”

Given recent market events and Binance’s role in instigating them, some have called out CZ for incitement. To recap, the FTX liquidation crisis that has caused a general spiral in the market over the past two weeks is believed by many to have initially occurred after the Binance CEO’s tweets caused panic and bank run on FTX.

Will Clemente, co-founder of digital asset research firm Reflexivity Research, shared on Twitter; “CZ’s recent tweet about Coinbase’s bitcoin holdings, which he just deleted, didn’t look good at all. I get the argument that he’s trying to protect the industry, but CZ is smart enough to know that exchange and storage wallets are separate.

Mario Nawfal, founder and CEO of, tweeted: “Is CZ implying that Coinbase custody does not hold 1-to-1 BTC on behalf of Grayscale Trust???? Check out his latest tweet. This is an inconvenience I have never experienced before. This is a very serious question (indirect accusation?)”.

Analyst, trader and investor 360_trader shared: “CZ proved today that he is about one thing… his empire. He is NOT HERE to focus on the industry… he deleted his tweet… But now… as I expected… He has exposed himself as a villain.”

Trader and investor BobLoukas called out CZ for not doing his due diligence before tweeting. He shared: “CZ ‘Let’s work together to increase transparency in the industry.’ Also CZ – Let me tweet a million random FUDs in the middle of a major bear market liquidity event, maybe just reach out to confirm.”

Related: Binance CEO Denies Report Firm Meets Abu Dhabi Investors for Crypto Recovery Fund

Cryptocurrency investment product provider Grayscale Investments shared on November 18 that all digital assets underlying Grayscale’s digital asset products are held under the custody of Coinbase Custody Trust Company, LLC. However, the company declined to provide on-chain proof of reserves or wallet addresses to show underlying assets, citing “security concerns.” At the time of publication, Coinbase (COIN) experienced a 5.3% increase in price.