Binance CEO CZ rejects allegations of market manipulation

by Mar 28, 2023CryptoNews0 comments

Changpeng ‘CZ’ Zhao has denied the accusations made by the Commodities Futures and Trading Commission (CFTC) against Binance on March 27. The CEO of Binance has claimed that the crypto exchange does not manipulate the market or trade for profit. In a blog post on March 28, CZ responded to the CFTC’s lawsuit, stating that the allegations were based on an incomplete understanding of the facts. The CFTC had accused Binance of improper compliance procedures and trading on its platform using 300 “house accounts” without disclosing it to customers in its Terms of Use.

The CFTC has accused Binance of not cooperating with their investigation and keeping important information hidden. The commission believes that Binance has not taken the necessary steps to prevent fraud or manipulation in the trading activity of certain accounts. However, Binance’s CEO CZ argued that the exchange primarily uses trading to convert cryptocurrency revenue into fiat or other cryptocurrencies for operational expenses. CZ also denied allegations of insider trading by explaining that Binance has strict policies to prevent employees from actively trading, including a 90-day no-day-trading rule and a prohibition on trading in futures.

In addition, CZ stated that Binance enforces strict policies to prevent employees from trading cryptocurrencies based on private information. 

CZ is disappointed and surprise

He emphasized that he strictly adhered to these policies and refrained from participating in Binance Launchpad, Earn, Margin, or Futures. CZ expressed disappointment and surprise regarding the recent CFTC filing, stating that Binance had worked cooperatively with the regulator for two years. The CFTC accused senior members of Binance of actively facilitating violations of US law and instructed US customers on ways to evade Binance’s compliance controls. However, CZ denied these allegations and stated that Binance has implemented “best-in-class” technology and has more than 750 employees working to ensure compliance with AML and KYC laws. He highlighted Binance’s track record of assisting US law enforcement in freezing and seizing over $125 million in funds in 2022 and $160 million in 2023.

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Conclusion

CZ highlighted that Binance.com possesses the largest number of licenses, totaling 16, for providing services related to trading digital assets compared to other platforms that facilitate the trading of cryptocurrencies.

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