CZ denies report that Binance is considering a major divestment of US business partners
CZ denies report that Binance is considering a major divestment of US business partners
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Binance CEO Changpeng Zhao has denied a report that the company is considering cutting ties with business partners in the United States. Binance has come under increasing scrutiny from US regulators in recent weeks.
Bloomberg reported on Feb. 17 that Binance Holdings is “assessing whether to sever ties with intermediary firms such as banks and service companies and is reassessing venture capital investments in the US,” citing an unnamed source. The source added that tokens from US-based projects like Circles USD Coin (USDC) could be delisted.
On the same day, in response to a report on the Bloomberg report, Zhao, often known as CZ, said, tweeted “4. False” in an apparent reference to his New Year’s tweet “Do’s and Don’ts,” where the fourth item on the list was “Ignore FUD, Fake News, Attacks, etc.”
CZ stated in a separate tweet, “We have temporarily withdrawn some potential investments or offers for bankrupt companies in the US.”
We have temporarily withdrawn some potential investments or offers for bankrupt companies in the US. Get permission first. https://t.co/js0OR7gy68
— CZ Binance (@cz_binance) February 17, 2023
CZ tweeted on Feb. 13 that Binance will review projects in jurisdictions with “persistent regulatory uncertainty (…) to ensure our users are protected from undue harm.” Binance Holdings does not serve clients in the United States, who are instead referred to the independent Binance.US.
Both Binance and Binance.US have been the focus of recent investigations by US regulators. The U.S. Securities and Exchange Commission (SEC) is reportedly investigating Binance.US ties to trading firms with direct ties to CZ.
See Also: Binance CEO: Crypto Industry Likely to Switch to Non-Dollar Stablecoins
Binance, but not Binance.US, suspended US dollar bank transfers without explanation on Feb. 8, but the action indicated banking problems. On Feb. 13, New York’s Department of Financial Services ordered Paxos Trust to stop minting the dollar-pegged Binance stablecoin BUSD after reports the SEC was preparing to file a lawsuit over the coin. As a result, Binance was hit with a wave of withdrawals.
Patrick Hillmann, Binance’s Chief Strategy Officer, reportedly said on Feb. 15 that the company expects US regulators to enforce fines on companies based on past compliance issues.
