Here’s Why CZ Was Rumored to Be on Red Notice

Rumors of an Interpol Red Notice for Binance CEO caused concern in the crypto community, but CZ denies them.

Changpeng "CZ" Zhao standing while cops are running in the background amidst Binance's and CZ's Red Notice Interpol FUD
  • The crypto community was alight with discussion as rumors circulated about an Interpol Red Notice for Binance CEO Changpeng “CZ” Zhao.
  • There is currently no evidence of a public notice.
  • Zhao has denied the rumors.

Over the past few months, Binance, one of the largest cryptocurrency exchanges in the world, has come under significant scrutiny. The Commodity Futures Trading Commission (CFTC) in the United States has filed a lawsuit against Binance for allegedly allowing US customers to trade derivatives without registering with the agency. 

Rumors have surfaced that Interpol has issued a Red Notice for Binance CEO Changpeng Zhao, adding to the exchange’s mounting legal troubles. While several news outlets reported on the alleged notice, there has been no public confirmation of its existence on Interpol’s website.

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The speculation was initially propagated by Jordan Fish, also known as Cobie, on his UpOnly podcast. Cobie posted an encrypted tweet that, when deciphered, stated “Interpol Red Notice for CZ.” Cobie’s Twitter account is currently protected, and his additional comments on the matter are available only to approved followers. Cobie had stated that the cipher was not intended to be broken and that the seed must have been leaked.

Jordan Fish also known as Cobie, Tweet thread on the decrypted sha256 tweet

Rumors Remain Unproven

Cobie’s rumor was further amplified by the Twitter account hyuktrades which initially stated that he would withdraw his funds from Binance in response to the situation. However, he has not commented further on the matter since then. 

CZ also denied the allegations on Twitter, sharing a photoshopped image of the alleged Red Notice. 

Indeed, as of April 4, there is no public Red Notice for CZ on Interpol’s website, despite rumors circulating that one has been issued. The Binance CEO dubbed the rumors “FUD” and urged the crypto community to remain united against the regulatory pressures the industry is currently facing.

Despite the lack of concrete evidence, it is possible that law enforcement agencies are privately circulating a Red Notice against CZ as Interpol rarely makes public announcements regarding ongoing investigations. 

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While there hasn’t been any public statement, there is a possibility that some information may have been shared with law enforcement agencies. Alternatively, the notice may still be pending approval. Samuel Lim, CZ’s colleague, is also absent from the Interpol site’s nearly 7,000 publicly listed Red Notices.

A Red Notice is not an international arrest warrant, nor does it mandate the arresting country to take any action against the individual in question. Instead, it serves as a request for authorities to locate and provisionally apprehend the person and hand them over to the country that initiated the notice.

CFTC Charges CZ: Red Notice a Possibility?

On March 27, the CFTC charged CZ and other parties with regulatory evasion and operating an illegal exchange. Therefore, if any Red Notice is issued in relation to this incident, it would serve rather than support the existing charges.

There is no information available on whether other countries have active cases against CZ, but CZ himself has stated his belief that the charges are likely sponsored by a competitor exchange, and described the rumors as “very petty.”

On the Flipside

  • The SEC and CFTC’s regulatory crackdown has put pressure on crypto exchanges to comply with laws and regulations.
  • Any Red Notice related to the charges against Zhao would only serve to advance the charges already filed.
  • The information that has been leaked has so far turned out to be an inaccurate prediction.

Why You Should Care

The rumors of a Red Notice against Binance CEO Changpeng Zhao have sparked concern within the crypto community, which is eager to avoid another Sam Bankman-Fried situation. If true, it could have serious implications for Zhao, Binance, and the global crypto industry.

To learn more about the implications of the recent CFTC involvement in the Binance lawsuit, check out this article:
Binance Lawsuit Explained: Why CFTC Involvement Is a Big Deal

Read this article to find out what Ripple’s CTO recently said about Bitcoin maximalists:
BTC vs. XRP: Ripple CTO Takes a Swipe at Bitcoin Maximalists

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.