Binance Hid Ties With China Even After The Crackdown In 2017
- Binance and its top executives have reportedly concealed ties with China for several years.
- A recent report claimed that Changpeng Zhao directed employees to hide information regarding their presence in China.
- The crypto exchange previously claimed that it had left China following the crackdown on crypto in 2017.
The world’s largest crypto exchange Binance reportedly concealed substantial ties to China after repeatedly claiming that all connections with the Asian nation had been severed. The exchange’s exit was announced after China’s crackdown on crypto in 2017.
CZ asked Binance employees to hide their presence in China
According to a report by Financial Times, Chief Executive Changpeng Zhao and others from Binance’s top management directed their employees to hide information related to the exchange’s presence in China. This would contradict the historical position maintained by the company’s executives who have consistently claimed that the exchange exited China in 2017.
Internal company documents viewed by FT indicate that the exchange concealed information related to an office in China that was operational till the end of 2019, as well as a Chinese Bank that was used to process salaries for some employees. The exchange’s employees were reportedly informed in 2018 that their wages would be paid through a bank based in Shanghai.
“We no longer publish our office addresses . . . people in China can directly say that our office is not in China,” Zhao reportedly said in a company messaging group back in November 2017. “Reminder: publicly, we have offices in Malta, Singapore, and Uganda. Please do not confirm any offices anywhere else, including China,” another internal message said.
It is unfortunate that anonymous sources are citing ancient history (in crypto terms) and dramatically mischaracterizing events. This is not an accurate picture of Binance’s operations.”
Statement from Binance
The information derived by FT from the exchange’s internal documents is consistent with the allegations made by the Commodities and Futures Trading Commission (CFTC) in the lawsuit that it filed against Binance earlier this week. The CFTC said in its complaint that the crypto exchange concealed the location of its offices as well as the identities and locations of the entities operating the trading platform.