Changpeng Zhao, CEO of Binance cryptocurrency exchange, has vowed to sue The Block Crypto, a cryptocurrency news website for reporting that Binance’s office in Shanghai was shut down abruptly after a police raid. CZ believes that the news contributed partly to bitcoin’s most recent price slump, reports Micky on November 23, 2019.
CZ Intends to Sue Cryptocurrency Website
Per the report, Changpeng Zhao (CZ) intends to sue The Block after the media publicized that Binance’s office in Shangai had been raided by the police, and then shut down.
According to CZ, The Block’s claim is “irresponsible” “fake news,” which calls for an apology.
Binance’s representative who spoke to Bloomberg also affirmed that news of the shutdown is false, and the crypto exchange’s office in Shanghai has not been in operation for the past two years.
The Block, on the other hand, has amended the story, by stating that the office was shut down “following a visit by authorities” instead of “following a police raid.”
Also, the media claimed that about 50 to 100 employees who worked in the office were forced to “either work remotely or relocate to Singapore.”
Media Stands Its Ground on Story
While CZ was only concerned that the media had triggered massive fear uncertainty and doubt (FUD) in the minds of crypto traders, the CEO became infuriated when Frank Chaparro, The Block’s news director, took it one step further to add credibility to the story.
In a 1400 worded piece, Chaparro said several sources had visited Binance’s Shanghai office, including Caijing.com, a Chinese media outlet that reportedly visited Binance’s premises on October 29, 2019, and November 2, 2019, after it was closed down.
“Binance’s denial of the mere existence of a Chinese office comes despite The Block having seen photographs of the office as part of conversations with Binance representatives about the location in question,” The Block said.
The publication also claimed that CZ had worked from the building this year, and news about the police’s visit was leaked by a Binance employee, who had allegedly revealed reliable information about the Malta-based exchange in the past.
Reportedly, The Block’s publication about Binance spread a wave of speculation on Twitter, and as such, it is part of the reason behind bitcoin’s 8.4% dump on the same day.
Another reason that can be linked to the virtual asset’s dip is news emerging from China.
China’s central bank has ordered the probe of crypto-related activities in Shanghai, while the People’s Bank of China (PBoC) issued a warning on November 22, 2019, stating that it will be cracking down hard on bitcoin and cryptocurrency trades in China.
Also, Focus Report, a Chinese media outlet has revealed that at least 755 tokens in the Chinese market are not backed by the distributed ledger technology or real initiatives, which shows the height of fraud in the crypto space.
Amidst these setbacks, BTCManager informed on November 18, 2019, that a PBOC Official is educating people in China about cryptocurrencies and Facebook’s Libra.