CZ Denies Binance Role in Recent Crypto Sell-Off

• CZ rejected allegations that Binance triggered the crypto sell-off.
• Binance will convert its $1B safety fund to Bitcoin gradually.

Changpeng Zhao, co-founder and former CEO of Binance, has denied the claims that he or Binance played a role in the recent crypto price drop. He replied after the crypto community’s continuous acquisition of Bitcoin, which saw a sharp price decline below $75,000 over the weekend.

Rumours on CZ and Binance 

Several rumors are spreading on Binance and about CZ on social media, claiming that the Binance exchange sold $1 billion worth of Bitcoin to trigger a sell-off. CZ’s comments on the supercycle weakened the belief, and Binance mishandled its SAFU fund, which is meant to protect users. CZ described these claims as false and misleading and called them a “FUD,” which means fear-based rumors.

CZ says that Binance did not sell any bitcoin, and the $1 billion Bitcoin trade basically comes from the user’s wallet. He mentioned that many users keep their crypto in Binance and use it like a wallet. He explains that crashes in the Binance wallet usually come from the users’ trading and withdrawing activities.

Binance recently announced its plans to convert SAFU funds from stablecoins into bitcoin. CZ explains that the conversion will happen slowly over 30 days, and Binance will purchase Bitcoin in small intervals by itself without any decentralized exchanges. 

Some traders say that CZ has damaged the confidence of the people in a long-term crypto bull by saying they have less confidence in the supercycle. He replied to that claim that he never said the supercycle was canceled, only that the confidence changed, and said that if he truly had the power to crash the market, then he would be able to fix it instantly. 

These criticisms come after the flash crash in October, which wiped out around $19 billion in leveraged positions. Star Xu, founder of the OKX have publicly blamed Binance for the crash. But right now, CZ has stepped down as Binance CEO in 2023 and served 4 months in a U.S. prison sentence for breaking anti-money laundering law. Despite all this, CZ remains one of the strongest influencers in the crypto industry. 

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