Binance CEO Changpeng Zhao admits to using company products but says employee trading is limited
Binance CEO Changpeng Zhao said he keeps his money in Binance. March 27.
Zhao admits to using Binance products
When asked if he and other employees use Binance, Zhao wrote:
“Personally, I have two accounts on Binance, one for my Binance card and one for my crypto holdings. I also need to convert cryptocurrencies from time to time for personal expenses and card payments.”
Zhao has confirmed that it uses Binance’s products, but denied that its employees have unlimited access to Binance. Zhao instead said he and other employees were restricted from trading according to the “90-day rule.”
Zhao argued that:[s] These policies are… strictly. “
Zhao also stated that he has never personally used certain Binance features such as Binance’s token sales platform, Launchpad, and has never used Binance’s earnings (interest), margin, or futures products. I added that never.
Binance keeps affiliate trading to a minimum
The above statement is just one of the CFTC’s specific claims. The allegation is that Zhao himself is involved in his Binance trading through his two personal accounts.
However, the CFTC also argued in its Filed March 27that Zhao directly or indirectly manages the 300 accounts traded on Binance for its own purposes;
Zhao also said that he is a direct or indirect owner of Merit Peak and Sigma Chain, which conduct OTC trading with Binance customers or use Binance’s trading services. Zhao and those companies said he never registered with the CFTC, the filing said.
In Zhao’s latest statement, Binance acknowledged that it trades “in some circumstances” to convert cryptocurrency earnings into fiat and other cryptocurrencies and cover costs. The company also said it has affiliates that are monitored to provide liquidity and ensure limited profits.It did not specifically name Merit Peak or Sigma Chain.
Binance said in a statement today that it is compliant with regulators, calling the CFTC charges “unexpected and disappointing.”