- March 30, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Binance appears to have been caught red-handed in a shocking revelation that could shake the industry to its core. Explosive documents obtained by the Financial Times reveal that Binance CEO Changpeng “CZ” Zhao and other top executives have been secretly concealing their ties with China for years.
Binance has long maintained that it severed its ties with China after the government’s crackdown on cryptocurrency in 2017. However, the leaked documents suggest a much closer relationship between the crypto exchange and the Chinese authorities than previously thought.
The alleged scandalous cover-up has sent shockwaves through the crypto community and sparked fears of a regulatory crackdown on the controversial exchange.
Leaked Documents Expose Binance China HQ, Use Of Local Bank
The Financial Times’ investigation revealed that the company’s activities in China reportedly included the use of an office, as well as a Chinese bank used to pay employees. The documents also suggest that Binance instructed its Chinese personnel to attend tax sessions in an office located in the country in 2019, contradicting the exchange’s public statements about its lack of presence in the country.
According to sources who spoke with the publication, the exchange allegedly went to extensive measures to conceal any traces of its Chinese origins, including the use of virtual private networks (VPNs). These software tools allow users to mask their location and gain access to services that may be restricted in certain regions.
However, Binance has vehemently denied these allegations, telling the Financial Times that anonymous sources are dredging up old information and misrepresenting the truth. The exchange maintains that these claims are “not an accurate picture of Binance’s operations.”
Not The First Accusation Of Questionable Operations
The leaked documents obtained by FT have added weight to the allegations made by the US Commodity Futures Trading Commission (CFTC) against Binance.
The CFTC had accused the cryptocurrency exchange of deliberately concealing the location of its executive offices.
The scandal has escalated even further with US Senator Bill Hagerty expressing his deep concerns about Binance’s alleged ties to the Chinese Communist Party during a heated Senate Banking Committee hearing.
Hagerty accused Binance of using “predatory” tactics to dominate emerging markets and suggested that it was part of a larger, state-backed network.
However, Zhao remains adamant in denying any association with the Chinese government.
The revelations about Binance’s alleged ties to China and the Communist Party have only added to the calls for greater oversight and accountability.
While Binance has promised to cooperate fully with any investigations, it remains to be seen how this latest revelation will impact the exchange and the wider crypto market.
-Featured image from Reuters/Dado Ruvic/Illustration
