Binance CEO Richard Teng has responded to concerns regarding FlowBank's bankruptcy, emphasizing that the impact on Binance customers has been minimal. FlowBank, a Swiss financial institution, recently faced regulatory scrutiny and subsequent bankruptcy due to severe breaches in capital requirements, as announced by Swiss regulators on June 13.

In an interview with Bloomberg, Teng stated that Binance maintains close communication with its clients affected by FlowBank's situation, noting that "very little" of customers' assets were held at FlowBank under a tripartite arrangement.

"There’s very little assets on FlowBank on the tripartite arrangement front," Teng clarified.

FlowBank, established in 2020, had forged partnerships with various crypto entities, including Binance, to facilitate trading collateral storage for clients. This arrangement allowed Binance customers to utilize FlowBank for collateral management, rather than keeping assets solely on the crypto exchange platform. Apart from Binance, FlowBank also collaborated with TrueUSD and CoinShares, the latter holding a substantial stake in the bank.

TrueUSD confirmed in a recent X post on June 14 that it terminated its banking relationship with FlowBank in April 2023, asserting no exposure to the bank's insolvency. Similarly, CoinShares disclosed in a blog post that its financial exposure to FlowBank as a customer remains minimal, with deposits amounting to approximately £100,000 ($127,600). CoinShares also holds a significant equity stake in FlowBank, equivalent to nearly 30% as of March 2022.

Earlier reports from May 2023 indicated that Binance was exploring alternative banking solutions to mitigate counterparty risks for institutional clients following the collapse of FTX. However, it is yet unclear whether FlowBank was chosen specifically for this purpose.

Teng's reassurances and Binance's proactive stance in managing the aftermath of FlowBank's bankruptcy underscore the exchange's commitment to safeguarding customer interests amid evolving regulatory landscapes and financial uncertainties in the crypto sector.