Binance CEO Changpeng “CZ” Zhao has refuted allegations that Binance has engaged in secret sales of Bitcoin (BTC) to artificially stabilize the price of its BNB token. Market commentators Dylan LeClair and Cory Klippsten accused Binance of manipulating the market to boost BNB’s value.
Wash trading like craaaaaazzzzyyyyy on Binance right now trying to pretend there’s support for BNB. This looks sooooooo bad for CZ.https://t.co/qCHjQCSXwD
— Cory Klippsten 🖐️ Swan.com 🦢 #Bitcoin (@coryklippsten) June 12, 2023
Zhao responded to the accusations, stating that Binance had not sold any BTC or BNB and clarifying that the exchange still held FTX Token (FTT). He dismissed the claims as fear, uncertainty, and doubt (FUD) and questioned the accuracy of identifying sellers based on price charts involving millions of traders.
4. 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. 🤷♂️ pic.twitter.com/M3MUH2bFRE
— CZ 🔶 Binance (@cz_binance) June 13, 2023
Technical analysis platform Skew alleged market manipulation by Binance’s trades involving BTC, BNB, and USDT. Other analyses raised concerns about BNB’s trading volume, suggesting potential market manipulation through wash trading.
“Binance is definitely up to something here to prevent BNB from crashing as well as BTC.”
It is facing a lawsuit from the SEC for alleged securities law violations and wash trading activities. The case is currently ongoing. CZ and Binance.US have denied the allegations and pledged to vigorously defend themselves in court.
Analyst Joe Consorti from The Bitcoin Layer described BNB’s price action as “unusual” with the “$220 level” being “staunchly defended.” He suggested that it may be a liquidation level for a BNB-collateralized loan.
Unusual price action on Binance.
Loads of selling pressure on bitcoin not present on other exchanges.
More cannon fodder that they may be selling spot BTC to prop up BNB.
— Joe Consorti ⚡ (@JoeConsorti) June 13, 2023
The cryptocurrency community closely watches the accusations and legal battle surrounding Binance and its CEO. They emphasize transparency and regulatory compliance.