Binance CEO CZ Slams Market Manipulation Allegations in Explosive Interview
Changpeng “CZ” Zhao has dismissed allegations made by Commodity Futures Trading Commission in March 27 complaint against Binance.
Binance CEO Changpeng “CZ” Zhao has dismissed allegations by Commodity Futures Trading Commission, stating that cryptocurrency exchanges “under no circumstances will they trade for profit ‘manipulate ‘market.’ claimed.
Key Takeaways
- CFTC failed to provide customers with correct information in terms of service about the fact Binance uses 300 “house accounts.”
- The CFTC accused Binance of keeping information “secret,”
- This is to encourage employees to take action.
- CZ pointed out Binance.com holds 16 licenses or provides digital asset trading services.
In March 28 blog post, CEO responded to a CFTC lawsuit that accused Binance, CZ of engaging in improper compliance procedures or trading, calling the allegations “an imperfect representation of facts.”
@cz_binance TWEET
In its complaint, the CFTC failed to provide customers with correct information in its terms of service about the fact that Binance uses 300 “house accounts” to trade on its platform and trade on its market.
The CFTC also accused Binance of keeping information “secret,” alleging the exchange refused to respond to an investigative subpoena issued by the commission obtain information on trading activity.
“Binance, to best of our knowledge or belief, has not subjected the trading activity of Merit Peak, SigmaChain, or their approximately 300 house accounts to fraud, manipulation,” the statement added.
However, CZ claims that while Binance “trades” in many situations, it primarily consists of converting cryptocurrency earnings to cover fiat and other cryptocurrency expenses.
Personally, I have two Binance accounts.
One for my Binance Card, and one for my crypto holdings. I eat my dog food and store my cryptocurrency on Binance.com. We also need to convert cryptocurrencies from time to time for personal expenses and card payments,” he added.
CZ also dismissed claims, its employees engaged in “insider trading,” stating that Binance has a 90-day no-trading rule for its employees, adding:
“This discourages employees from taking action. We also prohibit employees from trading futures.”
He further explained that employees are prohibited from buying, or selling coins if they receive personal information about cash.
Zhao called the latest CFTC filing “unexpected, disappointing” or has been working with regulators for more than two years.
The CFTC also alleges that senior company members “actively encouraged violations of U.S. law,” including “assisting and instructing” U.S. customers on circumventing Binance’s compliance controls. He added that the compliance program is only a guise.
CZ denied being lax about compliance efforts. He has developed “best-in-class” technology to ensure Binance.com’s compliance and currently employs over 750 people to help the company with anti-money laundering (AML) or know-your-customer (KYC) coverage. I explained that I was working to keep it inside. Works. Law:
“To date, we have processed more than 55,000 LE requests, frozen/seized more than $125 million in 2022 alone, and more than $160 million in 2023 so far, helping the U.S we supported LE.”
CZ also pointed out Binance.com holds 16 licenses and provides digital asset or trading services. This is the highest number of any cryptocurrency trading platform.