Zhao denies selling Bitcoin to support BNB.
Binance CEO Changpeng “CZ” Zhao has denied allegations that Binance has been secretly selling Bitcoin (BTC) to artificially stabilize the price of its BNB (BNB) token. The rumors have been spread by several market commentators, including analyst Dylan LeClair and Swan Bitcoin CEO Cory Klippsten, who have accused Binance of manipulating the market intentionally to artificially inflate the value of BNB. CZ said in a tweet that Binance had not sold any of its 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. CZ’s post was a direct response to a June 14 post from technical analysis platform Skew, which accused Binance of manipulating the market through a series of trades involving BTC, BNB, and Tether (USDT). Wash trading is a market manipulation tactic where a trader sells an asset and then buys it shortly after to inflate its demand or make it look like there’s more activity in the marketplace. In response to CZ’s post, Joe Consorti asserted that Binance should publish an audited statement proving that Binance has no BNB-collateralized liabilities in order for the “FUD” to end. The United States Securities and Exchange Commission sued Binance.US on June 5 for allegedly breaking securities laws and engaging in wash trading through its “primary undisclosed ‘market making’ trading firm Sigma Chain,” which is owned by CZ. CZ and Binance.US have denied any wrongdoing and say they will “vigorously” defend the charges laid against them in the U.S. District Court in Washington, D.C.