Binance’s former CEO, Changpeng “CZ” Zhao, has refuted claims that the crypto exchange is up for sale. He attributed the rumors to a competitor’s misinformation campaign.
Binance’s CZ Breaks Silence on Selling the Exchange
In a social media post, CZ asserted that Binance remains independent and is not being sold. He acknowledged that investors have consistently expressed interest in the company but clarified that any potential investment would be limited to a small, single-digit percentage stake.
The speculation about the exchange’s sale surfaced after Yi He, a co-founder of the exchange, also dismissed the claims. She suggested that the rumors originated from a rival’s public relations strategy and hinted that the U.S.-based exchange is more likely to acquire exchanges than sell itself. Yi He even invited exchanges considering a sale to reach out to Binance.
The rumors intensified following notable asset movements within the exchange’s reserves. On Feb. 11, an X user, AB Kuai.Dong, highlighted a substantial decline in the exchange’s holdings, including a reduction in its Bitcoin reserves. This raised concerns about the company’s financial stability. The exchange, however, denied that these transactions were related to asset sales, explaining that they were internal adjustments in the company’s treasury accounting.
As the world’s largest crypto exchange by trading volume, Binance frequently faces regulatory scrutiny. Its legal challenges continue across multiple jurisdictions.
Regulatory Constraints For the Exchange
In France, authorities have initiated an investigation into Binance, reportedly examining allegations of tax fraud and money laundering. The Paris Public Prosecutor’s Office is said to be reviewing the exchange’s activities from 2019 to 2024, with a focus on potential links to illicit financial activities, including those tied to drug trafficking. Nonetheless, the exchange has rejected all allegations.
In the United States, Binance’s regulatory situation appears to be shifting. The company and the U.S. Securities and Exchange Commission (SEC) recently filed a joint request to pause their legal battle for 60 days. The motion was approved on Feb. 10. At the end of this period, both parties will submit a report assessing whether legal proceedings should resume or if an extension is necessary.
Meanwhile, the crypto exchange continues to operate under new leadership. Richard Teng, who took over as CEO following CZ’s departure, has been focusing on regulatory compliance. Zhao recently completed a four-month prison sentence after pleading guilty to violations of U.S. anti-money laundering regulations.
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