Binance CEO Accused of Tanking Bitcoin to Prop Up BNB
The head of Binance, Changpeng Zhao, is accused of using Bitcoin to support the price of Binance's BNB token amidst regulatory pressures, according to popular investors in the crypto community.
Topics
Posted 8/23/2023, 11:17:50 AM
beincrypto.com
Relevant topic timeline:
- Binance founder and CEO Changpeng Zhao attempted to shut down the crypto exchange's U.S. offshoot earlier this year.
- The decision to liquidate the company was put to a vote by the Binance.US board of directors, but it did not receive unanimous support.
- Binance.US CEO Brian Shroder opposed the decision, expressing concerns about the potential negative impact on customers.
- The attempted shutdown highlights the lengths Zhao was willing to go to protect the larger global exchange amid increasing regulatory scrutiny.
- Binance.US had received a $4.5 billion valuation from investors last year.
- Binance founder and CEO Changpeng Zhao attempted to shut down the crypto exchange's U.S. offshoot earlier this year.
- The decision to liquidate the company was put to a vote by the Binance.US board of directors, but it did not receive unanimous support.
- Binance.US CEO Brian Shroder opposed the decision, expressing concerns about the potential negative impact on customers.
- The attempted shutdown highlights the lengths Zhao was willing to go to protect the larger global exchange amid increasing regulatory scrutiny.
- Binance.US had received a $4.5 billion valuation from investors last year.
- Changpeng Zhao, CEO of Binance, is determined to sever all ties with the U.S.
- Zhao has reportedly pushed to shut down Binance.US, the American branch of the global exchange.
- This decision highlights Zhao's commitment to preserving the reputation of Binance, the world's largest exchange.
- Binance.US declined to comment on the matter.
The BNB token, native to the BNB Chain, has reached its lowest price in the past year as it faces a decline following the SEC case against Binance, the central entity responsible for BNB's development. Binance has suspended EUR withdrawals and deposits, causing users to resort to alternative options such as card deposits or the P2P platform.
Binance US is reportedly reconsidering its decision to discontinue fiat on- and off-ramp services and is working on integrating new US dollar on-ramp solutions, potentially partnering with payment provider MoonPay to allow users to buy and sell cryptocurrencies in dollars.
Crypto community accuses Changpeng Zhao of selling Bitcoin to support BNB and prevent it from crashing, while prominent investor Mike Alfred criticizes CZ for "selling customer Bitcoin" to stay solvent.
Cryptocurrency trader Peter Brandt issues a warning about Binance and its native token, Binance Coin (BNB), amid concerns over the exchange's stability and allegations of selling off Bitcoin to support BNB's declining price.
### Summary
Binance introduces Binance Pay in Brazil, facilitating the adoption of major cryptocurrencies like XRP, Shiba Inu, and Bitcoin; Ripple executives Brad Garlinghouse and Chris Larsen provide trial availability for 2024; Shiba Inu hits a new adoption milestone with an increase in SHIB holders.
Binance CEO Changpeng Zhao dispelled rumors of internal chaos at Binance, explaining that the exchange is not selling its Bitcoin stash to protect the price of its native token, BNB, and that Binance did not fund BNB Chain's recent loan repayment.
Binance, the largest cryptocurrency exchange, has contacted low-liquidity token projects to enhance their liquidity protection by requesting details about their market makers and asking if they would contribute tokens to Binance savings pools.
Binance Coin (BNB) is at risk of losing key support, Bitcoin (BTC) may experience a market correction, and THORChain (RUNE) is expected to dip to lower levels before bouncing back, according to a popular crypto trader.
Binance has lost business with Mastercard and Visa as traditional financial institutions become wary of working with the cryptocurrency exchange due to regulatory scrutiny and concerns over compliance within the crypto industry.
Binance experienced a rapid withdrawal of $150 million worth of Bitcoin in one minute, indicating potential factors such as security, investment strategy, or preparation for a major transaction, while also raising speculation about market moves and potential illicit activities.
Binance faces scrutiny over SEPA concerns, market manipulation allegations, and sanction violations, while regulators crack down on crypto-related crimes; meanwhile, scams and allegations of insider trading plague the crypto industry.
Binance, the world's largest crypto exchange, has banned Russia-based users from trading in all currencies except the ruble due to a U.S. Justice Department investigation into possible violation of financial sanctions on Russia.
Solana (SOL) has the potential for significant gains in the next bull market, as it competes against other projects in the crypto space, while Binance Coin (BNB) faces uncertainty due to regulatory developments in the United States.
Binance CEO, Changpeng Zhao, remains confident in the face of regulatory challenges, stating that Binance is a stronger company now and is ahead of the game in terms of regulatory compliance, despite recent lawsuits and scrutiny from regulators.
Binance has seen the departure of 10 key executives, Nasdaq has received approval to trade AI-based orders, former FTX CEO Sam Bankman-Fried's bail has been denied, and Grayscale has asked the SEC to discuss the conversion of its Bitcoin fund to an ETF; Bitcoin is at $25,871, Ether is at $1,635, and XRP is at $0.50.
Binance.US rejects claims made by the SEC, calling them unsubstantiated and maintaining that it has custody and control over its digital assets, in response to the SEC's request for depositions and further discovery.
Binance.US CEO Brian Shroder leaves as the crypto exchange downsizes its workforce due to regulatory pressures, including a lawsuit from the SEC.
Binance, the largest exchange in the world, has faced numerous challenges, including customer outflows, the winding down of its stablecoin, and legal issues, but is working to overcome these obstacles.
Binance CEO Changpeng Zhao denies speculation surrounding the departure of Binance.US CEO Brian Shroder, stating that he is taking a break following a successful tenure at the company amid lawsuits from the SEC and CFTC, and assures that Binance has no liquidity issues.
Binance.US faces continued legal struggles with the SEC, with accusations of noncooperation and low trading volume, while India works on crypto regulation and EU lawmakers vote in favor of a cryptocurrency tax reporting rule. Additionally, U.S. Representative Tom Emmer and co-sponsors reintroduce the CBDC Anti-Surveillance State Act to protect financial privacy.
Bitcoin trading volumes on Binance, the world's largest crypto exchange, have plummeted by 57% amid lawsuits and regulatory scrutiny, while competitor Coinbase has seen a 9% increase in volumes over the same period.
Binance CEO Changpeng Zhao denies that Binance.US uses or has ever used Ceffu or Binance Custody, despite conflicting reports and statements from the SEC and Binance itself.
Binance's staked ether token, BETH, saw a significant increase in deposits, raising the total value locked to $731 million, despite regulatory uncertainty and competition from other platforms offering higher yields.
Binance and its CEO Changpeng Zhao have filed a motion seeking the dismissal of the SEC lawsuit, claiming that the regulator overstepped its authority and failed to provide clear guidelines for the crypto sector.