Binance CEO Changpeng Zhao denies rumors of Bitcoin sale to strengthen BNB

Binance CEO Changpeng “CZ” Zhao has denied allegations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilise the price of its Binance Coin (BNB) token.

The rumours come from several market commentators, including analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, who have accused Binance of deliberately manipulating the market to artificially inflate the value of BNB.

In a tweet on 13 June, CZ said Binance had not sold any BTC or BNB, adding that the crypto exchange still held “a bag” of FTX Token (FTT) – the native token of the now-defunct crypto exchange FTX.

“It’s amazing that they can know exactly who sold from a price chart involving millions of traders. FUD,” he added.

CZ’s post was a direct response to a 14 June post by technical analysis platform Skew, which accused Binance of manipulating the market through a series of trades in BTC, BNB and Tether (USDT):

“Binance is definitely up to something here to prevent BNB from crashing as well as BTC.”

In the same thread, Bitcoin analyst Dylan LeClair claimed that “BNB is clearly a fake market” trading at a lower realised volume than BTC.

In a tweet on 13 June, Cory Klippsten, CEO of Swan Bitcoin, claimed that Binance was “wash trading” and that Binance was “trying to pretend there is support for BNB”:

Wash trading is a market manipulation tactic in which a trader sells an asset and then buys it again shortly afterwards to inflate demand or make it appear that there is more activity in the market.

Analyst Joe Consorti of The Bitcoin Layer also described BNB’s price action as “unusual”, with the “$220 level” being “stubbornly defended”. He suggested it could be a liquidation level for a loan backed by BNB.

In response to CZ’s post, Consorti claimed that Binance should publish an audited statement proving that Binance has no liabilities backed by NBB to stop the “FUD”.

The US Securities and Exchange Commission sued Binance.US on 5 June for alleged violations of securities laws and for engaging in wash trading through the “primary, undisclosed ‘market-making’ trading firm Sigma Chain” owned by CZ.

CZ and Binance.US have denied any wrongdoing and intend to “vigorously” defend the charges against them in the US District Court in Washington, D.C.

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