Binance Denies Rumors of CZ Facing Interpol Red Notice Charges

• The Binance crypto exchange recently denied rumors that its CEO Changpeng Zhao (CZ) was served with an Interpol Red Notice for his arrest.
• The rumor first spread from a tweet by Cobie, which had a high follower count and caused significant FUD in the market.
• Binance has been in some legal trouble lately, making it easier for people to believe the rumor of a Red Notice being issued against CZ.

Rumor of Binance CEO’s Interpol Red Notice

A recent tweet from Cobie spread rumors that the CEO of the world’s largest crypto exchange, Binance, Changpeng Zhao (CZ), was facing a Red Notice issued by Interpol. However, these allegations were quickly denied by the company’s spokesperson.

Spread of Misinformation

Due to Cobie’s large follower base on Twitter, this misinformation spread quickly and resulted in significant FUD in the market. As a result, the value of BNB dropped 3%, even though trading volumes increased 55% within 24 hours after the tweet was released.

Regulatory Troubles for Binance

Recently, Binance has faced regulatory issues on multiple fronts. Its CEO is facing charges from Commodity Futures Trading Commission (CFTC) for violating federal laws as well as speculation that he might soon face Department of Justice (DOJ) actions too. Additionally, executives at Binance have been accused of hiding their connections with China. These events made it easier for people to believe in the rumor regarding CZ and an Interpol Red Notice being issued against him.

What is an Interpol Red Notice?

Interpol reserves issuing a Red Notice only for more severe matters like fraud and other criminal activities. Recently such Notices have been issued against Ruja Ignatova aka Cryptoqueen and Do Kwon who founded Terraform Labs before its collapse due to fraudulent activities they were involved in.

Reassurance From CZ

In order to address any concerns about non-compliance raised due to this rumor, CZ wrote an official letter reassuring the community that Binance had always maintained transparency with law enforcement agencies and complied with all registration and licensing requirements accordingly