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CZ Refutes Rumors Claiming Binance Sold BTC, BNB
Binance CEO Changpeng Zhao (CZ) has taken to Twitter to quash rumors that his crypto exchange had been selling its crypto holdings, including BTC and BNB.
The speculation had been rife on social media, with some asserting that the company was involved in significant sales of digital assets. However, Zhao debunked the rumors, saying Binance had not sold BTC or BNB and still held a bag of FTT tokens.
CZ Labels Rumor “FUD”
The Binance chief also expressed his amazement that some people could conclude which individual or community had sold cryptocurrencies based solely on a price chart, which involves millions of traders. He also labeled the rumors “FUD,” suggesting they were baseless attempts to create negative sentiment around Binance.
CZ’s statement sparked reactions from the crypto community, with some saying that rumor spreaders are looking for ways to use FUD to manipulate the market for their own benefit.
Binance Faces Regulatory Scrutiny
BTC remained relatively flat on Wednesday as even the US CPI announcement couldn’t move it decisively from $26,000. BNB, on the other hand, rose by 6% to $249 on the day following news that Binance.US will retain possession of customers’ crypto holdings amid the ongoing lawsuit with regulators.
This came after the Commission had requested an order to freeze the assets upon filing its lawsuit, stating that it would prevent the dissipation of funds.
Recall that the U.S. Securities and Exchange Commission (SEC) accused Binance’s American arm of violating securities laws and overextending its access to customer funds. According to the lawsuit, the violations include client fund mismanagement and deception of regulators and investors. Binance has strongly refuted these allegations.