03-28-2023 icon

Binance’s CZ Zhao Refutes Claims of Market Alteration

By Lucy Adegbe

Changpeng “CZ” Zhao, the owner of prominent crypto trading platform Binance, has counted claims presented by the Commodity and Futures Trading Commission, contending that the digital currency trading platform does not carry out exchange services for gains or alter the market in any case.

In an early Tuesday blog publication, the chair replied to the CFTC’s charges alleging Binance and CZ engaged in inappropriate adherence strategy and exchange, tagging the claims as “incomplete recitation of facts.”

According to the CFTC legal filing, Binance has carried out exchange activities utilizing the 300 “house accounts” without appropriately enlightening its users that exchange activities are being carried out in its market and its conditions of service.

The commission also alleged that the trading protocol withheld the information as “top secret” and claimed that the trading platform declined to send a response to the CFTC-given scrutiny subpoena asking for details on its exchange activities.

Nonetheless, the exchange founder CZ highlighted that although the crypto trading platform trades based on diverse situations, it is majorly to transform its digital currency earnings to offset expenditures in fiat or other digital currencies.

Giving further details, Binance founder chipped in words concerning allegations that members of its workforce participated in “insider trading,” noting that the platform has a three-month no-day exchange policy for its staff. 

In his words, “I observe these policies myself strictly…utilizing the best use of my time to build a solid platform that services our users.”

CZ also tagged the current CFTC complaint as surprising and disappointing, arguing that its platform has been fully compliant in cooperating with regulatory bodies for more than two years.