Binance CEO Changpeng Zhao admits to using company products but says employee trading is limited
Binance CEO Changpeng Zhao said that he stores his own money with Binance, as seen in a statement published on the exchange website on March 27.
Zhao admits to using Binance products
On the question of whether he and other employees use Binance, Zhao wrote:
“Personally, I have two accounts at Binance: one for Binance Card, one for my crypto holdings. I eat our own dog food and store my crypto on Binance.com. I also need to convert crypto from time-to-time to pay for my personal expenses or for the Card.”
Though Zhao admitted to using Binance’s own products, he denied that employees have unrestricted access to Binance. Zhao instead said that he and other employees are restricted from trading according to a “90 day rule,” meaning that they cannot buy or sell any given cryptocurrency within 90 days of their previous purchase or sale.
Zhao asserted that he “observe[s] these policies … strictly.”
Zhao also said he has never made personal use of certain Binance features such as Launchpad — the company’s token sale platform — and added that he has never made use of Binance’s earn (ie. interest-bearing), margin, or futures products.
Binance minimizes affiliate trading
The above statements address just one of the CFTC’s specific claims: its assertion Zhao himself is involved with Binance trading through two personal accounts.
However, the CFTC also alleged in its March 27 filing, that Zhao controls, directly or indirectly, 300 accounts that have traded on Binance for proprietary purposes.
It also said that Zhao is the direct or indirect owner of the firms Merit Peak and Sigma Chain, which have engaged in OTC trading with Binance customers or used Binance’s trading services. Zhao and those firms never registered with the CFTC, the filing says.
Within Zhao’s latest statement, Binance admitted that it trades “in some situations” in order to convert its crypto revenue to fiat and other cryptocurrencies and in turn cover expenses. The firm also said that it has affiliates that provide liquidity and are monitored to ensure limited profits. It does not name Merit Peak or Sigma Chain specifically.
Earlier today, Binance said in a statement that it is compliant with regulators and said that the CFTC’s charges were “unexpected and disappointing.”
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