The CEO of Binance, the largest cryptocurrency exchange, has denied rumors of receiving a notification from international law enforcement agencies and has urged the community not to panic.
The rumors began when a Twitter user under the pseudonym Cobie posted a message encoded with SHA-256 cryptographic hashing, which, when decoded, revealed the phrase “Interpol Red Notice for CZ.” This caused panic, and the price of BNB coin dropped to $299.5, but later recovered to $310.
However, Binance CEO Changpeng Zhao has suggested that this information may have been deliberately spread to create Fear, Uncertainty, and Doubt (FUD) and may have been planted by a rival exchange.
Zhao argues that such actions hurt both the exchanges involved and the entire cryptocurrency industry.
He advised users to block sources that spread misinformation and to avoid selling their crypto assets in a panic.
According to Zhao, the cryptocurrency industry is under attack from various external forces, and therefore, it must unite to survive this challenging period.
He referred to regulatory authorities’ checks, such as the US Commodity Futures Trading Commission (CFTC), which filed a lawsuit against Binance in March for lack of registration and violation of laws on commodity markets.
Binance’s market share in the spot market has significantly shrunk amid pressure from regulators, and more than $1 billion was withdrawn from the exchange in a day after the CFTC lawsuit was filed.
The situation remains uncertain, and Binance continues to face regulatory challenges. However, Zhao remains optimistic that the cryptocurrency industry can overcome these challenges if it unites and works together.