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Binance Charity Criticized for Moroccan $3M Donation as CEO CZ Takes it Personally

Published September 19, 2023 3:15 PM
Omar Elorfaly
Published September 19, 2023 3:15 PM

Key Takeaways

  • Binance donated $3M in BNB to users in Morocco for earthquake relief.
  • Binance and founder Changpeng Zhao received criticism over the donation.
  • CZ personally responded to critics on X.

Binance donated $3,000,000 worth of its native token BNB to victims of a severe earthquake in Morocco. Company founder Changpeng Zhao says  donations are meant to finance “food, water, masks, and even oxygen tanks” for survivors.

However, Binance received a slew of criticism regarding the donation, mostly from traditional charity organizations “who are not familiar with crypto,” according to CZ.

CZ took to X to respond personally to the negative feedback the company received following the donation, saying: “While we got overwhelming positive feedback from our users about the donation (as seen in the quoted tweet), and while the issues raised are typically from traditional charity organizations who are not familiar with crypto, we still take the feedback seriously.”

Binance Donates Crypto

“The impact of the earthquake on the Moroccan people is devastating. We hope we can bring some support to those affected. For Moroccan users who receive these donations but are unimpacted by the earthquake, we ask them to pass the funds on to those most in need,” Binance founder and CEO CZ said in the company’s blog post .

However, the company received several instances of scrutiny regarding donating money in the form of crypto instead of fiat currency. As a result, CZ tweeted  from his personal account to respond to critics.

The founder started by stating that the company has had a successful history of providing donations in the form of crypto. CZ brought up the example of the company’s donations to India.

“Binance has a history of providing essential items. Eg, food, water, masks, and even oxygen tanks that can save 12,000 people for covid victims in India, etc. These take time to organize. Crypto is fast,” he said.

He further responds to critics who claim the company should provide the donation in fiat currencies rather than crypto. CZ mentions that crypto transfers can be a lot faster than fiat transfers, firing back at critics, saying: “A non crypto person saying crypto is not cash is like a blind person saying lights are useless.”

Binance’s Philanthropy

The exchange has an entire blog post  dedicated to its prior efforts of providing aid to victims of natural disasters and political disputes.

The blog post says: “At Binance Charity, we’re committed to creating impactful change around the world, especially during times of crisis. Our charitable initiatives aim to provide timely and effective assistance to communities in need,” The company also admits “We recognize that the effectiveness of charitable interventions can be a topic of debate among experts in the humanitarian field.”

Binance cited a previous donation to victims of the Ukraine war of $10 million, $7 million of which directly to the United Nations.

“Since we announced our initiative Binance Charity has been working hard with major and local organizations on-the-ground such as UNHCR, UNICEF, Palianytsia and Truhoma, to figure out how to disseminate funds in the most impactful ways,” reads the company’s coverage  on the topic.

“This includes providing shelter, food, safe drinking water, medical supplies, cash assistance and psychological support to those who have been forced to take refuge. We’re also supporting  in-country efforts for those who have not been able to leave, and face an even greater threat of danger.”

CZ’s tweet  also mentions Binance’s efforts in the past to help 12,000 COVID victims in India, as well as “another 12,000 people in Libya.”

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