Binance CEO Changpeng Zhao Dismisses Allegations of Bitcoin Sale to Manipulate BNB Prices

In a recent development, Changpeng “CZ” Zhao, CEO of Binance, has strongly denied rumors suggesting that Binance has been selling Bitcoin in secret to artificially stabilize the price of its BNB token. The allegations, made by market commentators including analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, have sparked concerns over market manipulation and the authenticity of BNB’s value.

Responding to the accusations on June 13, CZ took to Twitter to assert that Binance has not engaged in any BTC or BNB trading activities as alleged. Furthermore, he clarified that the exchange still retains a significant amount of FTX Tokens, the native currency of the now-defunct crypto exchange FTX. CZ dismissed the claims made by commentators, emphasizing the complexity of attributing specific sales to millions of traders based solely on a price chart, referring to the allegations as “FUD” (Fear, Uncertainty, and Doubt).

The response from CZ followed a post by technical analysis platform Skew on June 14, which accused Binance of manipulating the market through a series of trades involving BTC, BNB, and Tether. The post suggested that Binance was attempting to prevent BNB from crashing while inflating the value of the token.

Allegations of Fake Volume and Wash Trading Surrounding Cryptocurrency Giant

Bitcoin analyst LeClair, participating in the same thread, labeled BNB’s market as “clearly fake,” highlighting its significantly lower realized volume compared to BTC. Additionally, Swan Bitcoin CEO Klippsten raised concerns about “wash trading” activities at Binance, alleging that the exchange was creating a false impression of support for BNB. Wash trading involves artificially inflating an asset’s demand or market activity by selling and subsequently repurchasing it.

Further scrutiny came from analyst Joe Consorti from The Bitcoin Layer, who deemed the price movement of BNB as “unusual,” specifically pointing out the firm defense of the $220 level. Consorti speculated that this level might be linked to the liquidation of BNB-collateralized loans.

As CZ’s response garnered attention, Consorti urged Binance to publish an audited statement to dispel any doubts about Binance’s BNB-collateralized liabilities and put an end to the “FUD” surrounding the matter.

It is worth noting that Binance.US, a separate entity from Binance, faced legal action from the United States Securities and Exchange Commission (SEC) on June 5. The SEC accused Binance.US of violating securities laws and engaging in wash trading through its trading firm Sigma Chain, owned by CZ. Binance and CZ have strongly denied the allegations and vowed to defend themselves vigorously in the U.S. District Court in Washington, D.C.

As the allegations continue to unfold, the crypto community awaits further developments and clarity regarding the accusations against Binance and its CEO.

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