Binance CEO Changpeng Zhao denies rumors of selling Bitcoin to bolster BNB

Binance CEO Changpeng “CZ” Zhao has denied claims that Binance has been covertly selling Bitcoin (BTC) to manipulate the value of its own cryptocurrency, Binance Coin (BNB).

Rumors have been circulated by multiple market commentators, such as analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, claiming that Binance is engaging in market manipulation to artificially boost the value of BNB.

On June 13, CZ tweeted that Binance had not disposed of any of their Bitcoin or BNB, and that they still possessed a quantity of FTX Token (FTT) – the currency of the now-defunct crypto exchange FTX.

“It’s incredible that they can pinpoint who sold just by looking at a price chart with millions of traders. Fear, Uncertainty, and Doubt,” he remarked.

In response to Skew’s June 14 post, which accused Binance of manipulating the market through a series of trades involving Bitcoin (BTC), Binance Coin (BNB), and Tether (USDT), CZ posted a direct response.

In the same discussion, Bitcoin expert Dylan LeClair asserted that “BNB is obviously a fabricated market” with less actualized volume than BTC.

On June 13, Cory Klippsten, the CEO of Swan Bitcoin, tweeted that Binance was engaging in “wash trading” and implied that Binance was attempting to give the impression that there was support for BNB.

Wash trading is a form of market manipulation in which a trader executes a trade of an asset, only to buy it back shortly after, creating the illusion of increased demand or heightened activity in the marketplace.

Joe Consorti, an analyst from The Bitcoin Layer, considered BNB’s price activity to be “unusual” with the “$220 level” being “resolutely defended”. He postulated that it could be a liquidation threshold for a loan backed by BNB.

In response to CZ’s post, Consorti argued that Binance should release an audited report demonstrating that there are no BNB-backed liabilities in order to put an end to the “FUD”.

According to a study by the NBER, 70% of transactions on unregulated exchanges are wash trades.

On June 5, the United States Securities and Exchange Commission filed a lawsuit against Binance.US, alleging that it had violated securities laws and had been engaging in wash trading through its primary, undisclosed “market making” trading firm, Sigma Chain, which is owned by CZ.

CZ and Binance.US have asserted their innocence and plan to “vigorously” contest the accusations leveled against them in the U.S. District Court in Washington D.C.

Magazine: US and China Attempt to Suppress Binance, Allegation of $40M Bribe by SBF: Asia Express

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