Another crypto is feeling bearish pressure on Thursday. This time, Binance (CCC:BNB-USD) is feeling the heat, following a big piece of news. On top of the BNB crypto drama, the company’s CEO is taking to Twitter to address what he sees as “FUD.”
Binance and its investors are on high alert this afternoon. According to Bloomberg, the Binance exchange is under investigation by both the IRS and the U.S. Department of Justice. The probe is confidential, so sources with information on the matter are anonymous, but say the goal is for the government entities to get insight into Binance’s business dealings.
The news is a big deal for the cryptocurrency. It is a new and significant attempt for the government to involve itself in the dealings of an unregulated market. Combine regulation concerns with outcry over crypto’s environmental impact and the recently proved volatility of altcoins, and it’s easy to see the market is shaken.
Binance has taken a hit in the wake of the news. The price of the Binance coin BNB is down 12% on an already bearish day for crypto. The news is also causing other plays to lose in sympathy. Bitcoin’s (CCC:BTC-USD) slight rebound since yesterday has been undone, with the coin resting at $49,000. Crypto exchange Coinbase (NASDAQ:COIN) fell 11% as well.
Changpeng Zhao Defends the Binance (BNB) Crypto
Binance CEO Changpeng Zhao has responded to the Bloomberg report via social media, taking fault with how the story was framed. He then encouraged his followers to unsubscribe from any sources of Binance “FUD,” articles that sow fear, uncertainty, and doubt.
The "news" title is bad. Article itself isn't so bad actually (but who reads). It described how @binance collaborated with law enforcement agencies to fight bad players, but somehow made it look like a bad thing… 🤔 Anyways. Back to work.
— CZ 🔶 Binance (@cz_binance) May 13, 2021
The official Binance Twitter account is also taking a stand. Replying to Bloomberg’s Bloomberg Crypto account, the exchange says it take its legal obligations “very seriously,” and that it has a strong track record of assisting law enforcement agencies around the world.
We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion. (1/3) https://t.co/68UB1InOBK
— Binance (@binance) May 13, 2021
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.