Binance CEO dismisses reports of an Interpol Red Notice lodged against him, citing Photoshop as evidence

Changpeng Zhao, the CEO of Binance, often known as CZ, has spoken out to refute claims that Interpol had filed a Red Notice against him.

A well-known Twitter user with a sizable following, Cobie, is the source of the rumor. With the use of the SHA-256 hash algorithm, he tweeted an encrypted message that was then posted as a series of letters and numbers.

A noteworthy point is that this same encryption is used for security by other cryptocurrencies, including Bitcoin. The translated notification says, « Interpol Red Notice for CZ. »

How Changpeng Zhao Would Be Affected By A Red Notice

A Red Notice, according to an excerpt from the Interpol website, is « A request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action. » The website also states that the member state or international tribunal making the request would seek the people named in the Red Notice.

But as CZ pointed out at roughly 21:51 UTC on April 3, it appears out the rumor was a fabrication by Cobie. The Binance executive also went on to give community members a piece of advice on investing: don’t sell your assets in a panic when you hear a rumor of FUD.

The advise was given as traders hedged their holdings of Bitcoin (BTC) and Binance Coin (BNB) in response to Cobie’s article, hoping to prevent any losses that could result.

It’s Not The First Rumor Concerning Binance

It should be noted that this is not the first widely spread rumor to involve Binance or its CEO. The Federal Bureau of Investigations (FBI) allegedly shot CZ, according to reports that surfaced in WeChat in China at the beginning of March.

The photo-shopped screenshot of The New York Times’ Chinese-language Twitter feed was shared by CZ with CZ. Although one of CZ’s New Year’s objectives was to « Ignore FUD, fake news, attacks, etc., » the CEO for Binance has had a difficult 2023 so far. When questioned about the bizarre rumor that he had been shot by American law enforcement, CZ kept his reaction brief, stating that the Binance team collaborates closely with the FBI. He added an emoji « shrug » as a final punctuation to his answer.

CZ made a small joke about anyone who bought into the false report and lost money because of it in a comment he made in response to another Twitter user’s tweet.

Price of Binance Coin Drops Due to FUD Fueled by Rumors

Due to Cobie’s reputation on Crypto Twitter as a source of insightful information and his track record, his message went viral quickly. Notably, there was so much talk about the claim that traders reacted, sending the price of BTC and BNB down.

Within minutes after Cobie’s article, BTC lost about 1%, while BNB lost over 3%. The latter, which is the ecosystem’s native coin, had a sky-high trading volume that increased by approximately 60%. This suggested that traders were trading more often, either by liquidating their BNB holdings or removing them from the Binance market.

It is important to note that Changpeng Zhao’s attempt to refute the rumor with his reply was successful, as the values of both Bitcoin and Binance Coin immediately began to increase.

At the time of writing, the price of Bitcoin has increased by around 0.16 over the past 24 hours to trade for $27,981. The price of BNB, on the other hand, has increased 0.23% during the same period to trade at $310.98. With an increase of 48.21 over the previous day, Binance Coin trading volume is still quite strong.

CEO of Binance is still a work in progress

Given the ongoing Fear, Uncertainty, and Doubt (FUD) following the latest litigation, Binance exchange and its CEO are still not completely safe.

According to reports, the CEO of the biggest cryptocurrency exchange by trading volume and the Commodity Futures Trading Commission (CFTC) are the targets of a lawsuit alleging breaches of federal law. Notably, the case led to rumors of more criminal charges as well as a potential lawsuit by the US Department of Justice (DOJ).

CZ sent a letter defending himself and his business, Binance, in an effort to calm down the community. He discussed trade, registrations and licenses, U.S. blocks, technology for compliance, collaboration and transparency with law enforcement, and trading in the letter. The Binance executive closed the letter with the non-biased statement, « I strictly observe these policies. »

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