- Changpeng Zhao, Binance’s chief, resolutely rebuffs allegations about the concealed sale of Bitcoin to shore up Binance Coin.
- Zhao remains nonplussed about the accusation source, emphasizing that Binance’s crypto holdings remain significant, including a large stake in FTX Token.
- Criticisms echo calls for financial transparency from Binance, suggesting an audited statement could allay concerns about concealed BNB-related commitments.
Amidst a cloud of rumors, Changpeng Zhao, known as “C.Z.,” the leading figure of Binance, sternly dismissed insinuations that the crypto trading platform had secretly unloaded Bitcoin (BTC) to boost its own BNB coin’s value falsely. These whispered accusations, largely from crypto industry commentators like Swan Bitcoin’s Cory Klippsten and data analyst Dylan LeClair, pointed fingers at Binance for purportedly manipulating market dynamics to amplify BNB’s worth.
With the rumor mill in full swing, C.Z. took to Twitter on June 13 to silence the chatter. He assured his vast audience that Binance had yet to offload any BTC or BNB. Furthermore, he stressed that the crypto marketplace still maintains a substantial chunk of FTX Token (FTT), the digital currency of the now defunct FTX exchange. Zhao expressed perplexity at the accusers’ confidence in pinpointing specific sellers solely from a price chart reflecting millions of traders. He categorically discarded the allegations as an instance of market fear, uncertainty, and doubt (FUD).
In an intriguing plot twist, C.Z.’s Twitter post served as a response to a June 14 post by Skew, a platform known for its technical analysis. Skew had boldly accused Binance of bending market trends through transactions involving BTC, BNB, and Tether (USDT). Supporting Skew’s allegations, LeClair, the Bitcoin data analyst, labeled BNB as a “manipulated market” exhibiting less trading volume than BTC.
At the crux of the controversy lies wash trading, an illicit strategy where an investor simultaneously sells and buys an asset to feign high trading activity or artificially inflate its demand. Additionally, Joe Consorti from The Bitcoin Layer observed the peculiar behavior of BNB’s price around the $220 mark, speculating it might indicate a liquidation threshold for a BNB-backed loan. He called upon Binance to publish an audited financial statement to disprove the existence of BNB-backed liabilities, thereby mitigating the escalating FUD.
In the face of an impending SEC lawsuit and increasing speculation, Binance’s chief fiercely rejects suggestions of secret Bitcoin transactions meant to inflate BNB’s price artificially.
Regulatory Showdown Continues between SEC and Binance.US
Binance.US, the stateside division of the prominent digital currency exchange Binance, is under the stringent scrutiny of the U.S. Securities and Exchange Commission (SEC). The regulatory body has lodged 13 charges against Binance organizations and their founder, Changpeng Zhao, accusing them of unlawfully running an unregistered securities exchange. The SEC contends that despite public declarations stating Binance.US operates as a distinct, independent platform, it is merely an extension of the original Binance platform.
While the SEC sought to impose a temporary asset freeze, which would halt Binance.US operations until legal matters were settled, this request was denied by a U.S. judge, enabling the platform to maintain operations. Amidst this, Binance US is preparing for a potentially expensive legal dispute, reducing its workforce to cut costs. The outcome of this regulatory battle is yet to be seen, with both parties preparing to spar over Binance.US’ legal standing.
