- Binance CEO Changpeng Zhao has refuted allegations that the company has been secretly selling Bitcoin to artificially stabilize the price of its BNB token.
- The accusations, made by several market commentators, have been dismissed as FUD (Fear, Uncertainty, and Doubt) by Zhao.
In the midst of swirling rumors and accusations, Changpeng Zhao, the CEO of Binance, has come forward to deny claims that the cryptocurrency exchange has been secretly selling Bitcoin (BTC) to artificially boost the price of its native token, BNB. These allegations, put forth by various market commentators, including analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, have been categorically dismissed by Zhao as baseless fear, uncertainty, and doubt (FUD).
The rumors suggested that Binance was manipulating the market to artificially inflate the value of BNB. However, Zhao, in a tweet dated June 13, 2023, clarified that Binance had not sold any BTC or BNB. He even mentioned that the exchange still held a bag of FTT, the native token of the now-defunct crypto exchange FTX. Zhao expressed his astonishment at how these commentators could pinpoint who sold what based solely on a price chart involving millions of traders.
The allegations were further fueled by a post from technical analysis platform Skew, which suggested that Binance was manipulating the market through a series of trades involving BTC, BNB, and Tether (USDT).
Bitcoin analyst LeClair claimed that BNB was a “fake market,” trading with less realized volume than BTC. Klippsten also alleged that Binance was engaging in “wash trading,” a market manipulation tactic where a trader sells an asset and then buys it shortly after to inflate its demand or make it look like there’s more activity in the marketplace.
In response to these allegations, Zhao urged for an end to the FUD and called for an audited statement proving that Binance has no BNB-collateralized liabilities. Amidst these controversies, Binance and Zhao continue to deny any wrongdoing and have pledged to vigorously defend the charges laid against them in the U.S. District Court in Washington, D.C.
Suggested Reading:
- SEC Chair Gary Gensler’s Alleged 2019 Offer to Advise Binance: A Twist in the Crypto Regulatory Saga
- SEC Charges Against Binance for Alleged Mishandling of Funds and Deception of Regulators
