Friday, May 24, 2024

Binance CEO CZ rejects allegations of market manipulation

Binance CEO Changpeng ‘CZ’ Zhao has rejected allegations from the Commodities Futures and Buying and selling Fee grievance, arguing the corporate “doesn’t commerce for revenue or ‘manipulate’ the market below any circumstances.”

The chief govt shared his first official response to the lawsuit in a March 28 weblog publish.

The CEO argued that whereas Binance “trades” in a variety of conditions, that is primarily to transform them “from time-to-time” to cowl bills in fiat or different cryptocurrencies, as its revenues are in crypto.

“Personally, I’ve two accounts at Binance: one for Binance Card, one for my crypto holdings. I eat our personal pet food and retailer my crypto on I additionally must convert crypto every now and then to pay for my private bills or for the Card.”

Zhao additionally famous that Binance has a 90 day no-day-trading rule for workers, including: 

“That is to forestall any workers from actively buying and selling. We additionally prohibit our workers from buying and selling in Futures.”

He went additional to state that workers are restricted from shopping for or promoting cash the place they’ve obtained “non-public info” about them.

“I observe these insurance policies myself strictly. I additionally by no means participated in Binance Launchpad, Earn, Margin, or Futures. I do know the perfect use of my time is to construct a stable platform that providers our customers,” he add

Zhao referred to as the latest CFTC submitting each “surprising and disappointing,” because it had been working cooperatively with the regulator for over two years. He additionally famous that the grievance “seems to comprise an incomplete recitation of info.”

Concerning the compliance allegations, CZ says has developed “best-in-class” expertise to make sure compliance and at present has greater than 750 individuals working to make sure their enterprise operates inside the bounds of anti-money laundering (AML) and know your shopper (KYC) legal guidelines:

“Up to now, we’ve got dealt with 55,000+ LE requests, and assisted US LE freeze/seize greater than $125 million in funds in 2022 alone and $160 million in 2023 up to now.”

CZ additionally identified that holds 16 licenses to supply digital asset buying and selling providers, probably the most of any cryptocurrency buying and selling platform.

It is a growing story, and additional info will likely be added because it turns into out there.