Key Takeaways
- The CEO of Binance, Changpeng "CZ" Zhao, has retaliated against skeptics and conspiracists who have accused Binance of being a sinister business with a Chinese base of operations that has a secret affiliation with the Chinese government.
- This revelation emerged when a former Washington Post journalist challenged CZ on Twitter and asked him about Guangying Chen.
The CEO of Binance, Changpeng "CZ" Zhao, has retaliated against skeptics and conspiracists who have accused Binance of being a sinister business with a Chinese base of operations that has a secret affiliation with the Chinese government. This revelation emerged when a former Washington Post journalist challenged CZ on Twitter and asked him about Guangying Chen. This question prompted CZ to reply to his detractors in a blog post published on September 1 through Binance.
In his response, he clarified that the query relates to a rumor that his close friend Guangying Chen, a Chinese national, is the hidden owner of Bijie Tech, a business he created in 2015. These rumors also speculate that he might be the prospective owner of Binance. CZ clarifies that Chen is a coworker he encountered via a friend. He explained that he had offered her a management job to oversee the affairs of the back office at Bijie Tech. This was before her re-hiring at Binance. He also expressed that Chen, being one of the few people to have resided initially in China, made conspiracy theorists connect her as a clandestine proprietor of the companies.
According to websites like Scam Binance, Chen once held 93% of the shares in both Bijie Tech and Binance. They also associated her with several other places. According to CZ, the rumors came from an erstwhile campaign that a contender oversaw through an undisclosed microsite.
He stated that because of this, the media and cyberbullies had singled out Chen’s family and her for harassment. He expressed how sad he was by dragging Chen into the whole mess and said that if he knew this would be the detrimental effect the reality would have imprinted on her life, he would not have encouraged her to take what then looked like such a simple process.
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Connections to China
Furthermore, CZ vehemently rejected any linkages between his company and the Chinese government. He even went as far as sharing a few of his negative interactions with the Chinese government on both an individual and professional basis. In addition to these claims, CZ associated Binance’s most significant problem with China’s decision to classify the company and each offshore exchange as scandalous organizations. He further explained how, in this same light, their adversaries in the west go to great lengths to portray them as a Chinese corporation.
According to CZ, the unintended implications result from the background of some other Binance employees, including himself, which makes the company an accessible mark for special interests, the media, and even legislators that despise their business. He stated that perhaps because of his Chinese ancestry and that of their workers, it gave the assumption that Binance was covertly working for the Chinese government.
The media has recently voiced opinions in light of that effect. A Fortune India article recently published on August 30 referred to Binance as a Chinese-rooted crypto exchange. They also asserted that Binance and other Chinese-connected centralized crypto exchanges were occupying India by operating their services unhinged and illegally within the country.
According to CZ, as much as Binance has never been formally incorporated in China and never conducted business in a manner consistent with a Chinese company, Chinese-penetrated tales continue to circulate.
CZ continued that they are engaged in seeking great talent, no matter their background. Binance has affiliations in several countries, including France, Spain, Italy, the United Arab Emirates, and Bahrain. He also added that even though more people worldwide make up their more extensive workforce base, some individuals continue to refer to them as a Chinese corporation.
CZ, who left China for Canada when he was 12 years old, returned to launch a business in 2015. However, it was eventually shut down by the Chinese government. He laid the grounds for a company named Bijie Tech two years before Binance, offering platforms for exchanges-as-a-service to other exchanges. They included 30 clients, and business got brisk. After the Chinese government stopped allowing any more of these exchanges in March 2017, a lot of their clients closed their doors for good.
Though technically founded in the Cayman Islands in 2017, Binance does not yet have a designated headquarters. As of October 2021, Binance was the biggest centralized cryptocurrency exchange in the world as of October 2021, with an approximation of 28.6 million crypto users. The company is valued at around $300 million, according to a former official of Binance in November 2021.
How long do you think these claims will go on? Do you believe there are any grounded ways Binance can ensure this never happens in the future? Please share your thoughts with us in the comment section.
