Shortly after a Bloomberg report on Friday that cryptocurrency exchange Binance was under investigation for permitting US residents to place unlawful trades, Binance founder and CEO Changpeng Zhao (better known as CZ) dismissed the reports during a live AMA on Clubhouse, saying that the report had “no teeth.”
“This is a topic that just came up, literally like a few minutes ago or a hour ago,” said CZ. “So number one, the news article said there was no, I don’t have it in front of me, there was no “misconduct,” I have to dig it up. So number one there was no report of misconduct from Binance, so the report kind of defeated itself.”
CZ noted that as a business Binance maintains a “no comment” policy on communications with regulators, which places the company in a difficult position with regards to rebutting the contents of the report, which cited a single anonymous source.
An investigation does not mean that “they’re trying to charge us, trying to do something with us,” and that the report could simply be a routine communication, he said.