Falcon Finance withdraws funds from centralized exchanges

DWF Labs and Falcon Finance co-founder Andrei Grachev said that the team has chosen to withdraw all Falcon funds from centralized exchanges as a part of its risk management strategy.

In a recent post, Grachev delivered an update to the crypto space, stating that the team has moved all their crypto funds away from centralized exchanges due to security concerns. He claimed that they have an independent auditor who has signed an attestation letter to prove that the funds have been removed from CEXs.

“We moved all funds away from CEXes, got an attestation letter from the auditors that confirmed that,” said Grachev.

Additionally, the project plans to launch a new transparency page, which is expected to go live within this week. The team is currently working on the structure for the page, but the page will likely show movements of the project’s funds, crypto holdings and other transparency metrics.

Why is Falcon Finance departing from CEXs?

Falcon Finance’s decision to move all its funds away from centralized exchanges indicates a clear desire to strengthen its risk management strategies, transparency, and independence from CEXs.

Co-founder Andrei Grachev emphasized this shift alongside upcoming efforts to improve on-chain visibility through a dedicated transparency page. By removing assets from CEXs, Falcon mitigates custodial risks such as account freezes, hacks, or mismanagement, which have plagued centralized exchanges in the past.

This aligns with the protocol’s commitment to using only market-neutral strategies, avoiding directional trades entirely, and maintaining strict reserve backing for every USDf minted.

According to the published brief, Falcon’s reserves are overcollateralized at a ratio of 116%, with 89% held in stablecoins and Bitcoin (BTC). These reserves are also audited, which further underscores their commitment to transparency and sustainable growth.

Offloading funds from centralized exchanges allows them to hold these reserves on-chain, making it easier to publicly demonstrate proof of reserves and enable more efficient, transparent financial operations.