Binance is currently under fire from all sides, but its CEO, Changpeng Zhao, intends to make the truth heard.
Changpeng Zhao attacks journalists
The news has already made the rounds in the crypto space: exchange firm Binance has been undermined by two consecutive investigations. The first, implemented by the Securities and Exchange Commission (SEC), is looking at the popular BNB token, which was created by Binance in 2017. The idea is to check whether it was completely legal when it was issued as an ICO. It is already considered a transparent asset.
Since bad news doesn’t come alone, Reuters has gotten involved and accused Changpeng Zhao’s company of allowing criminals to launder money.
Specialized firm Chainalysis, which contracts with US government agencies to track illegal flows, concluded in a 2020 report that Binance received $770 million in criminal funds in 2019 alone, more than any other exchange.
Excerpts from a Reuters article regarding money laundering on Binance
This type of survey is not surprising. Over the past few months, Binance has been seeking licenses globally, and verifications are an integral part of the process. Surprisingly enough is the violence with which the company, which is considered one of the most powerful in the cryptocurrency world, is accused. However, her CEO is not ready to let him go. In order to prove his innocence, he did not hesitate to counterattack on Twitter by questioning the Chainalysis data that was used as evidence during the Reuters accusation.
Changpeng Zhao goes further by attacking Reuters journalists and publishing the emails exchanged between Binance and the newspaper. The messages were collected in a blog post, and are backed up by questions, data and arguments that conflict with the controversial Reuters investigation. The group also mentions facts that are too old to use. According to the CEO, Reuters refers to events going back to the beginning of Binance, which should be considered the mistakes of a very young company in the making.
These events will testify to the “laundering” of cryptocurrency
Although it has been marred by several scandals such as the Etherbase hack where criminals stored their loot on the platform, Binance is doing its best to remain legal and cooperate with authorities when necessary. With the increase in popularity, Binance is increasingly tightening its policy and supervision. It will be obligated, in any case, to do so when the European Union implements its own tracking law.
But for Changpeng Zhao fans and BNB owners, this event is a testament to the revenge that the authorities and advocates of traditional systems intend to take in the crypto space. While the latter threatens the credit authorities, the collapse of cryptocurrency has undoubtedly weakened the industry and given leverage to governments as well as financial organizations. The latter did not stop trying to prove that cryptocurrencies were unstable in order to enjoy investor disgust with digital currencies.
As the crisis forces the crypto space to purge itself of all small projects and review their operations, the traditional system deals a fatal blow to the industry by making it more unpopular with the public, including attacking powerful companies like Binance. So the case still has to be pursued.
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