Binance’s CZ refutes report claiming company has been hiding China ties

Binance CEO Changpeng ‘CZ’ Zhao said the transparency inherent in blockchain technology is evidence enough to disprove false claims in “traditional media writing.”

CZ created this tweet following media reports alleging that Binance hid its existence and links to China and did not leave China despite claiming to have left the country in 2017.

China’s claim

according to financial times reportAccording to the latest report from the Financial Times, Binance had “substantial” links with China, even though the company claims it left China in 2017.

The newspaper claims it has insights into various company documents and internal communication channels that confirm these claims. As a result, he deliberately concealed the scope and location of his business in China.

In 2018, employees were said to receive waves through banks in Shanghai, and in 2019 some Chinese employees visited Binance’s offices in China for a tax session. Binance employees were seen discussing the terms of hiring talent in Shanghai with the hiring team in Shanghai.

In mid-2018, employees were reportedly instructed not to wear clothing or accessories bearing the Binance logo around the company’s offices in China. The report also claims that onboarding documents directed the new Chinese employee to use her VPN.

An unnamed former employee revealed that many of the company’s key developers are still in China. However, the FT could confirm office use in China through 2020.

legal trouble

These claims come at a difficult time for exchanges. The company has been under heavy regulatory scrutiny since November 2022 as the collapse of FTX has made it the largest and most popular crypto exchange on the market.

Earlier this week, the US Commodity Futures Trading Commission (CTFC) sued Binance for illegally serving users in the US.

temporary federal judge stopped Binance.US’ acquisition of Voyager for $1.3 billion comes a day after the Department of Justice (DOJ) filed an appeal over approval of the sale. The suspension will give the government more time to investigate the legality of the deal.

Additionally, a U.S. Senator has issued a letter to Binance asking them to clarify various concerns. responded March 28th.

Binance believes regulation is the best way to protect its users and says it continues to support the efforts of regulators and authorities around the world. He also revealed that the exchange’s operations are mostly on-chain, making it more transparent than traditional financial institutions.

The exchange also detailed its history and current operational status to alleviate lawmakers’ concerns.

The senator has not publicly responded to Binance’s blog post as of press time.