CZ denounces false rumor ‘widely’ spread on China’s WeChat

BJ kang

A Metamask security analyst stated this event was the “2023 adaptation of attempted market manipulation.”

Binance CEO Changpeng “CZ” Zhao has denied a rumor that he had been “shot” by the U.S. federal law enforcement agency, which was “spread widely” across a Chinese messaging platform, in a recent tweet.

In a Mar. 4 tweet, CZ addressed the false speculations that circulated on the Chinese messaging platform WeChat, claiming that he was "shot" by The Federal Bureau of Investigation (FBI), taking the opportunity to reiterate the close working relationship that exists between his team and the FBI.

Someone photoshoped this, and it got spread widely on WeChat in china. It says I got shot by the FBI, whom our team work with closely… ‍♂️ 4. pic.twitter.com/2Iz7c1QgA8
— CZ Binance (@cz_binance) March 3, 2023

He wrote the number “4,” at the end of the tweet, which refers to his Jan. 3 tweet about simplifying his goals for 2023.

He listed the fourth goal as a reminder to ignore FUD (Fear, Uncertainty, and Doubt), fake news, attacks, and other distractions.

The first three goals listed were to focus on education, compliance as well as product and service.

Shortly after on Mar. 4, CZ retweeted someone asking him, “Brother Peng, I heard that you were biu-biued by the FBI? If it’s true, you just nod your head and give a hint [translated].”

If you sold on someone’s photoshopped fake image, then I feel sorry for you, but not really… https://t.co/pRfC2Jsqz5
— CZ Binance (@cz_binance) March 3, 2023

The user had circled text in a screenshot that stated “Zhao Changpeng was shot dead by the FBI [translated].”

Harry Denley, a Metamask security analyst replied to CZ’s tweet on Mar. 4 likening the event to a false rumor spread about Ethereum co-founder Vitalik Buterin in 2017 of “dying in a car crash.”

Denley called this rumor that circulated about CZ the “2023 adaptation of attempted market manipulation.”

It was previously announced in Oct. 2022 that Binance.US hired former FBI special agent BJ Kang to head up its investigation unit, aimed at combating illegal activity on the platform.

Kang was once dubbed "the most feared man on Wall Street" by Reuters after being photographed arresting Bernie Madoff – who was found guilty of running the largest Ponzi scheme to date.

Most recently, CZ, along with Binance.US CEO Brian Shroder, were sent letters from three United States senators, Elizabeth Warren, Chris Van Hollen and Roger Marshall, demanding more information regarding the financials of Binance.

The Senators claimed that the “little information” available in regards to Binance’s financials, suggests that the exchange is a “hotbed of illegal financial activity.”

Binance.us

Former FBI special agent BJ Kang has been onboarded with Binance US to steer a new investigative unit aimed at finding and stopping illegal activity.

United States crypto exchange Binance US has created a new “investigations unit” and tapped a former FBI special agent as its new head, with the aim of seeking out and stopping illegal activity on its platform.

The “investigations unit” is a brand new unit within the U.S. crypto exchange, the firm's head of legal Krishna Juvvadi confirmed to Cointelegraph and sees former FBI agent BJ Kang become the company’s first “head of investigations.”

The role will see him partnering with law enforcement, regulators, and even other exchanges to seek out and stop illegal activity on its platform, Kang will also build an “investigations infrastructure” for Binance US.

In an Oct. 20 statement, Binance US said it has strengthened its legal, compliance, and risk operations over the past year by increasing its department headcount by 145% and dedicating over one-fifth of the company’s total workforce to those functions.

Kang is known for his high-profile investigations into securities fraud and insider trading in the traditional finance space during his nearly 20-year stint at the FBI.

The former FBI agent was once dubbed as “the most feared man on Wall Street” by Reuters after gaining notoriety for being photographed arresting Bernie Madoff — who was found guilty of running the largest Ponzi scheme to date — and Raj Rajaratnam, a former hedge fund manager found guilty of insider trading.

He previously served at the FBI Washington Field Office’s cybercrime squad investigating cyber-enabled money laundering, extortion, and hackers targeting crypto and financial firms amongst other crimes.

The appointment of Kang comes as the exchange is facing probes from the Securities and Exchange Commission (SEC) which reportedly requested information regarding two companies supposedly acting as market makers for the platform and is investigating how Binance US may have disclosed its potential links to the companies to users.

Binance, which operates separately from its US arm, has also had to fight back against two Reuters exposes over the past year which accused the platform of processing at least $2.35 billion worth of transactions from hacks, investment frauds, and narcotics sales between 2017 and 2021.

The most recent allegations on Oct. 17 claimed the platform “swerved scrutiny” from regulators in the U.S. and United Kingdom, pointing out two separate proposals submitted by either employees or affiliates.

In the case of the U.K allegation, it was proposed that Binance backdate service agreements to gain a financial registration exemption, and in the U.S. a proposal to direct authorities' attention to a U.S. entity instead of to Binance itself.

BJ kang