- Binance CEO, Changpeng Zhao, vehemently denies the rumors of secretly selling Bitcoin to support BNB price.
- Zhao challenges market analysts to provide concrete evidence for their accusations, adding that Binance has not indulged in any illegal trading activities.
Amidst a flurry of speculations, Binance CEO Changpeng Zhao – also known as CZ – has categorically denied the rumors alleging Binance of selling Bitcoin behind the scenes to maintain the BNB token’s price stability. These accusations, leveled by market pundits including Dylan LeClair, an analyst, and Cory Klippsten, Swan Bitcoin’s CEO, suggest Binance’s market manipulation to artificially inflate BNB’s value.
Addressing these conjectures in a June 13 tweet, CZ clarified that Binance has not liquidated any Bitcoin or BNB. He further disclosed that the crypto exchange continues to retain a portion of FTX Token, the native token of the now-defunct crypto exchange FTX. CZ expressed his incredulity at the analysts’ ability to discern specific sellers based solely on a price chart populated by millions of traders.
The tweet was CZ’s rebuttal to a June 14 post from Skew, a technical analysis platform, accusing Binance of potential market manipulation through a series of transactions involving Bitcoin, BNB, and Tether. In the same thread, LeClair described BNB’s market as “clearly fake,” trading with lesser realized volume than Bitcoin.
On June 13, Klippsten suggested that Binance was resorting to “wash trading” – a manipulative practice where a trader sells and quickly repurchases an asset to inflate its demand or simulate marketplace activity. Klippsten further claimed that Binance was artificially creating an impression of BNB support.
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Joe Consorti, an analyst from The Bitcoin Layer, noted BNB’s “unusual” price action, with the “$220 level” being staunchly defended, implying a potential liquidation level for a BNB-collateralized loan. In response to CZ’s tweet, Consorti proposed Binance should release an audited statement, affirming that it holds no BNB-collateralized liabilities, as a measure to dispel the “FUD” (Fear, Uncertainty, and Doubt).
Furthermore, Binance.US faced a lawsuit from the United States Securities and Exchange Commission on June 5. The suit alleged the violation of securities laws and wash trading through CZ’s owned trading firm, Sigma Chain. Both CZ and Binance.US have strongly refuted the accusations, pledging to contest the charges vigorously in the U.S. District Court in Washington, D.C.
Binance Coin has experienced a value depreciation of over 20% following the SEC’s action. Nonetheless, CZ’s stance remains firm, rejecting the accusations of under-the-table trading activities.
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