For a few days, there has been massive firing on Twitter and in the mainstream media (MSM) against the world’s largest crypto exchange Binance. The (rightly) criticized Proof of Reserves makes the public nervous. Especially after the collapse of FTX, whose founder and former CEO Sam Bankman-Fried (SBF) was recently arrested in the Bahamas. Most recently, Reuters reported that Binance could soon face criminal charges in the U.S. Binance and its founder Changpeng Zhao (CZ), are now fighting back to avoid panic and another bank run.
As reported by FinTelegram, Reuters has spread the rumor that prosecutors in the U.S. DOJ could bring charges against Binance and its people soon. In doing so, Reuters also mentioned that Binance has been hiring many new people who used to work at regulators or law enforcement agencies for months.
CZ sees the Reuters article as FUD and an attack. In a blog post titled “Inside Binance’s Fight Against Crypto Crime,” Binance explains how closely it would work with regulators and law enforcement to prevent money laundering and cybercrime. In 2022, the Binance :
- Responded to over 47,000 law enforcement requests
- Increased security and compliance headcount by more than 500%
- Participated in over 70 anti-cybercrime workshops with global law enforcement
- Became the first blockchain and crypto company to join the National Cyber-Forensics and Training Alliance (NCFTA)
On Twitter, some people have apparently set their sights on taking down Binance by initiating a bank run. They are asking people to withdraw their funds from Binance immediately, as the collapse could be imminent. CZ still suspects bribery by the now-arrested FTX founder Sam Bankman-Fried.
If Binance does have liquidity problems, it would be the beginning of the end of the crypto era as we know it.
