The crypto market has been abuzz with rumors spread by Twitter user @cobie claiming that Interpol allegedly issued a Red Notice against Binance CEO Changpeng Zhao (CZ). Binance’s BNB token and bitcoin (BTC) plunged but quickly recovered. The rumor traveled on the shoulders of the CFTC lawsuit against CZ and Binance and was therefore thought possible in the short term. CZ denied it on Twitter and declared the rumor fake.
Speculation spread after popular Twitter user @Cobie posted an encrypted message using the SHA-256 hash algorithm. The encrypted message read: “Interpol Red Notice for [Binance’s CEO].” After someone cracked the code, the post spooked markets, even though it was a rumor.
The rumor about the issuance of an Interpol Red Notice for Changpeng Zhao (CZ), the CEO of Binance, has immediately impacted the exchange’s native currency, BNB. The Binance coin suffered a 3.11% drop in price but recovered quickly. It seems like some Twitter users are actively working on the collapse of Binance. Twitter is the mainstream medium for most crypto people.
Spokespeople for Binance and Interpol didn’t immediately respond to requests for comment. On Twitter, Binance Chief Strategy Officer Patrick Hillmann said, regarding the rumor, that, “One of two things is true: 1. It’s bullsh-t 2. A law enforcement agent is illegally leaking elements of a case file.” He added: “My bet is #1.”
However, the rumor made many crypto traders and investors nervous because they feared for the future of Binance, CZ, and the entire cryptocurrency industry. In addition, the uncertainties and volatility in the cryptocurrency market have also been exacerbated by the current charge against CZ. Many consider crypto promising investment opportunities, but they can be dangerous due to the lack of regulation and the possibility of legal disputes.
According to a previous report by Cryptoinform, Changpeng Zhao (CZ) has been accused by two law firms, Moscowitz and Boies Schiller Flexner, of engaging in fraudulent activities within the cryptocurrency market. The allegations against the Binance CEO include issuing unregistered securities and using self-proclaimed “finance gurus” on social media to promote the exchange of personal financial gains.
