CZ denies report Binance is considering major breakup with US business partners

Binance CEO Changpeng Zhao has denied a study that the institution is considering cutting ties with United States concern partners. Binance has been the entity of expanding scrutiny from U.S. regulators successful caller weeks.

Bloomberg reported on Feb. 17 that Binance Holdings “is looking astatine whether to sever ties with intermediary firms specified arsenic banks and services firms and is reassessing venture-capital investments successful the US,” citing an unnamed source. The root added that tokens from U.S.-based projects, specified arsenic Circle’s USD Coin (USDC), whitethorn beryllium delisted.

On the aforesaid day, successful effect to a study connected the Bloomberg report, Zhao, often known arsenic CZ, tweeted “4. False” successful evident notation to his New Year’s tweet of “Do’s and Don’ts,” wherever the 4th point connected the database was “Ignore FUD, fake news, attacks, etc.”

CZ stated successful a abstracted tweet, “We pulled backmost connected immoderate imaginable investments, oregon bids connected bankrupt companies successful the US for now.”

We pulled backmost connected immoderate imaginable investments, oregon bids connected bankrupt companies successful the US for now. Seek support first. https://t.co/js0OR7gy68

CZ tweeted connected Feb. 13 that Binance would beryllium reviewing projects successful jurisdictions with “ongoing regulatory uncertainty […] To guarantee our users are insulated from immoderate undue harm.” Binance Holdings does not service customers successful the United States, who are referred alternatively to the autarkic Binance.US.

Both Binance and Binance.US person been the absorption of caller investigations by U.S. regulators. The U.S. Securities and Exchange Commission (SEC) is reportedly looking astatine ties between Binance.US and trading firms with nonstop connections to CZ.

Related: Binance CEO: Crypto manufacture volition astir apt determination to non-dollar stablecoins

Binance, but not Binance.US, suspended slope transfers successful U.S. dollars connected Feb. 8 without explanation, but the enactment hinted astatine banking problems. On Feb. 13, the New York Department of Financial Services ordered Paxos Trust to halt minting the dollar-pegged Binance stablecoin BUSD aft reports that the SEC was preparing a suit implicit the coin. Binance was deed with a surge of withdrawals arsenic a result.

Binance main strategy serviceman Patrick Hillmann reportedly said connected Feb. 15 that the institution expected U.S regulators to extract monetary penalties from the companies owed to past compliance issues.