Binance Chief Changpeng Zhao Firmly Refutes Allegations of Bitcoin Sales for BNB Strengthening

Binance CEO Changpeng Zhao Denies Rumors of Selling Bitcoin to Bolster BNB

Binance CEO Changpeng “CZ” Zhao has refuted accusations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the price of its BNB (BNB) token.

The rumors have come from several market commentators, including analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, who have accused Binance of intentionally manipulating the market to artificially inflate the value of BNB.

In a June 13 tweet, CZ said that Binance had not sold any of its Bitcoin or BNB, adding that the crypto exchange still held “a bag” of FTX Token (FTT).

“It is amazing they can know exactly who sold based on just a price chart involving millions of traders. FUD,” he added.

CZ’s post was a direct response to a June 14 post from technical analysis platform Skew, which accused Binance of manipulating the market through a series of trades involving BTC, BNB, and Tether (USDT):

“Binance is definitely up to something here to prevent BNB from crashing as well as BTC.”

In the same thread, Bitcoin analyst LeClair claimed that “BNB is clearly a fake market,” trading with less realized volume than BTC.

In a June 13 tweet, Klippsten also alleged that Binance was engaging in “wash trading” and claimed that Binance is “trying to pretend” there’s support for BNB:

Wash trading is a market manipulation tactic where a trader sells an asset and then buys it shortly after to inflate its demand or make it look like there’s more activity in the marketplace.

Analyst Joe Consorti from The Bitcoin Layer also 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.

In response to CZ’s post, Consorti asserted that Binance should publish an audited statement proving that Binance has no BNB-collateralized liabilities in order for the “FUD” to end.

The United States Securities and Exchange Commission sued Binance.US on June 5 for allegedly breaking securities laws in addition to engaging in wash trading through its “primary undisclosed ‘market making’ trading firm Sigma Chain,” which is owned by CZ.

CZ and Binance.US have denied any wrongdoing and say they will “vigorously” defend the charges laid against them in the U.S. District Court in Washington, D.C.