Binance boss responds to bitcoin dump rumors

Changpeng Zhao (CZ), the CEO of Binance, recently responded to several allegations against the most famous crypto trading platform on Twitter. Binance has been rumored to have sold its Bitcoin (BTC) stash in a bid to secure the price of its own Binance coin (BNB). It would even have caused the Bitcoin price to drop.

Twitterer debunks BNB rumours

There were rumors that a BNB loan was in danger of being liquidated, leading to a massive crash in the BNB market. Binance would therefore sell BTC to maintain the BNB price. However, a Twitter user calls everything disinformation and Fear, insecurity and doubt (FUD).

According to the tweeter, the situation started in October 2022 when a hacker deposited 900,000 stolen BNB on Venus Protocol, a DeFi platform on the Binance Smart Chain. It then returned a $150 million loan to stablecoins USDT and USDC.

In response to the hack, Venus Protocol granted Binance sole access to the loan at the time. Binance then destroyed the 2 million stolen BNB tokens to phase them out. Binance has already repaid 90 million USDT of the loan. Therefore, according to the Twitter user, it is very unlikely that a large amount of BNB will be dumped and the rumors are unfounded.

Binance CEO Confused About Bitcoin FUD

Binance CEO Zhao has since done so answered about the analysis and agrees with the researcher. He appreciates the extensive research and is surprised that people think this FUD could have influenced the Bitcoin price at all.

“It’s also crazy to think that a ‘$30 million could affect BTC price’ FUD could spread… That’s less than 0.001% of BTC’s daily trading volume.”

For some time, Binance has faced criticism from the general public and the trading platform is embroiled in a dispute with the Securities and Exchange Commission (SEC) in the United States. Binance also recently had to leave the Netherlands.

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