- Binance CEO, Changpeng “CZ” Zhao, denies rumors of selling Bitcoin to prop up BNB.
- Multiple accounts cited on-chain data to support their claims.
- CZ suggested that their arguments are weak.
Between ongoing regulatory issues and pressures from the community, the world’s largest exchange finds itself in a tight spot. Most recently, CEO Changpeng “CZ” Zhao had to deny rumors of the exchange selling Bitcoin to prop up BNB.
Rumors Surface About Binance Market Manipulation With BNB
On Tuesday, June 13, rumors started circulating about Binance completing a financial operation that some called market manipulation. In particular, one Twitter user suggested a complex chain of transactions involving Bitcoin (BTC), Binance Coin (BNB), Tether (USDT), and Binance USD (BUSD).
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The user suggested that Binance started propping up BNB on May 27, using its Bitcoin reserves. According to the user, the operation’s aim was supposedly to prop up Binance’s own BNB token from crashing.
In response, Binance’s CEO promptly denied these rumors, claiming that the exchange did not sell any Bitcoin.
In a June 13, 2023 tweet, Zhao claimed that Binance had not sold any of its Bitcoin (BTC) or BNB holdings. He further mentioned that the crypto exchange still held the FTX Token (FTT), the native token of the defunct cryptocurrency exchange FTX.
“It is amazing they can know exactly who sold based on just a price chart involving millions of traders,” CZ concluded.
On the Flipside
- There is no definitive proof that Binance is selling its Bitcoin reserves. As CZ suggested, critics did not provide data from specific wallet addresses.
- Binance faces a lawsuit by the Securities and Exchange Commission. One of the counts in the lawsuit stated that Binance misled customers about its ability to detect market manipulation.
Why You Should Care
Binance is the largest crypto exchange in the world, and rumors like these could hurt its reputation.
Read more about SEC’s lawsuit against Binance:
Binance Sued: How SEC Lawsuit Differs from CFTC Case
Read more about SEC’s legal battle with Coinbase:
SEC Rebukes Coinbase ‘Meritless’ Request for Regulatory Clarity
