- Binance CEO Changpeng Zhao downplayed user concerns, arguing that external factors are driving fear, uncertainty and doubt in BNB and the exchange.
- Binance, the world’s largest exchange, witnessed a spike in customer withdrawals since the weekend.
- Rumors surrounding allegations of money laundering, drug conspiracy cases and insolvency have resulted in massive withdrawals from the exchange.
Binance CEO Changpeng Zhao believes that external factors are creating fear, uncertainty and doubt (FUD) among the exchange’s users and BNB holders. Binance, the world’s largest exchange by volume, has been experiencing a massive rise in withdrawals from its platform, amid concerns of money laundering.
Binance CEO Changpeng Zhao addresses FUD surrounding the exchange
Binance, the world’s largest exchange by trade volume, has been surrounded by controversies since the collapse of Samuel Bankman-Fried’s FTX exchange. Binance has witnessed a spike in withdrawals, including a 24-hour window where $3 billion worth of cryptocurrencies left the exchange in the past month.
Changpeng Zhao, CEO of Binance addressed user concerns and said that the recent wave of FUD has come from external factors. The executive shared nine potential reasons for the uncertainty in a Twitter thread and argued that external factors are driving the fear among investors that are withdrawing funds from the exchange.
Forbes recently reported that Binance is currently under investigation for money laundering. At the same time, the crypto exchange assisted the US Drug Enforcement Administration in a drug conspiracy case. The platform was used for money laundering by an illicit drug distributor and Binance cooperated with law enforcement, assisting the investigation.
Twitter and social media platforms are flooded with rumors of Binance’s insolvency.
Binance and CZ are currently navigating allegations of money laundering
A recent development revealed that the crypto exchange CEO sent out personal emails to each client and addressed the FUD surrounding Binance. However, despite the reassurance from the exchange platform and the CEO, the number of hacks and exploits on the BNB chain could pose a challenge for users to trust the platform and its native token. BNB is currently trading at $243. The token wiped out 12% in gains for holders over the past two weeks.