Binance CEO Changpeng Zhao has hit back at some crypto traders claiming that the embattled crypto exchange was selling massive amounts of Bitcoin to keep their native token (BNB) afloat.
Several traders on Binance FUD Twitter deduced this idea after trading charts showed them signs of massive selling of Bitcoin to support the BNB token. Binance CEO claimed that the rumors were fake and several BNB and BTC tokens in their possession were still intact.
He also claimed that the crypto exchange still has many bags of FTT tokens that they haven't sold since the collapse of the FTX crypto exchange. FTT was the native token of the failed exchange before its collapse.
On Twitter, Changpeng Zhao was clearly unhappy with the rumors while suggesting that some government-sponsored traders were peddling these rumors. "Binance have not sold BTC or BNB. We even still have a bag of FTT.
It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD. 🤷♂️," Changpeng Zhao said on Twitter.
4. Binance have not sold BTC or BNB. We even still have a bag of FTT.
— CZ 🔶 Binance (@cz_binance) June 13, 2023
It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD. 🤷♂️ pic.twitter.com/M3MUH2bFRE
Who is Spreading the FUD Rumors?
Before Changpeng Zhao made statements regarding selling Bitcoin to stabilize the BNB token, tweets from popular traders @JW100x and @52kskew were the first to start circulating the rumors.
According to them, Binance was trying to stay afloat their troubles with the Securities and Exchange Commission by selling some of the BTC in their possession in place of the BNB token. Data provided by Twitter showed that more than 3 million persons had viewed the tweet from the two traders.
"USDT reserves have been pumped into BNB aggressively since 27th May. BNB is being sold off for BUSD to suppress volatility in BTC. BUSD is pumped into BTC to suppress downside volatility so BTC can be swapped out for USDT," @52kskew said on Twitter.
Within the same day, another trader with the username @JW100x said," Binance and CZ have been selling spot Bitcoin at an alarming rate, to defend the $BNB $220 liquidation waterfall
As spot Bitcoin is sold off, BNB is purchased, which defends the $220 liquidation but also caps the upside potential of Bitcoin
It is a total house of cards."
Binance Problems With the SEC
Binance SEC lawsuit started on 5th June when the Securities and Exchange Commission filed a complaint against the world's largest crypto exchange.
The charges against Binance reached up to 13, and they were all based on the crypto exchange committing offenses that are against the regulatory laws of the United States. The major allegation against Binance was fraud, with the Securities and Exchange Commission saying Binance was running an illegal entity in the country.
"Defendants have unlawfully solicited U.S. investors to buy, sell, and trade crypto
asset securities through unregistered trading platforms available online at Binance.com
(“Binance.com Platform”) and Binance.US (“Binance.US Platform”) (collectively, “Binance
Platforms”). Defendants have engaged in multiple unregistered offers and sales of crypto asset
securities and other investment schemes. And Defendants BAM Trading and BAM Management Defrauded equity, retail, and institutional investors about purported surveillance and controlled over manipulative trading on the Binance.US Platform, which were in fact virtually non-existent," a part of the court filing said.