TL;DR: Cryptocurrency exchange Binance is vowing to fight back after news outlet The Block asserted the exchange had offices in Shanghai, China and that they were recently closed after authorities raided the location as part of a larger crackdown. Exchange CEO Changpeng Zhao (CZ) overnight insisted a lawsuit was in the works, and pledged, along with TRON’s Justin Sun, nearly $1.5 million to an anti-fear uncertainty and doubt (FUD) fund in response.
Binance CEO Vows to Lawsuit Against The Block
“We will be suing them,” CZ doubled-down after insisting crypto news site The Block spread irresponsible FUD with a story citing unnamed sources about a supposed raid of Binance offices in mainland China. “Instead of apologizing to the community for the fake headline news of the non-existent ‘police raid,'” he stressed, “which damaged our reputation, and $btc price, [The Block] now tries to argue if there was an office, if CZ had a meeting… who cares? Own up & apologize for your mistake.”
At press time the only concession made by either side was in a 1,400 explanatory opinion editorial post from The Block, Setting the record straight on our Binance reporting, this time not paywalled, detailing how its journalists arrived at the initial story, photographs it labeled as indeed Binance’s Shanghai offices, and mildly walking back use of the word “raid” in its headline. Following “publication, other vetted sources have questioned the veracity of the word ‘raid,’ as used in the report.” The Block clarified, “We’ve updated our previous story — and headline — to reflect this ambiguity.”
Pressed further online for comment about exactly what, if anything, happened, and if any of his staff been arrested in Shanghai by any government officials “whatsoever,” CZ answered a short, pointed, “no.” Recriminations moved to another level entirely as The Block and CZ traded snark and insults, calling-back to an earlier incident last month when the new’s site analyst representative tried to pin down whether China’s online payments giant Alipay had an arrangement with Binance (Alipay denied). CZ appeared to play both sides coyly, at once teasing an unstated loophole-ish agreement while chastising The Block for being politically naive: “somethings are better left unsaid. Recommend no more news like these, for the sake of the people, our industry (and our business).” The Block analyst deleted the tweet.
This time around, The Block and CZ seem to be digging-in to their respective positions on the Shanghai offices and raid matters. “When you raise funds for your #crypto project, allocate some funds for fighting FUD,” CZ posted to social media. “I will add this to the list of pointers I give to new cryptopreneurs.” To that, TRON’s Justin Sun agreed, “I personally would like to donate 100 $btc to FUD fighting fund.” CZ then remarked he too would match Sun’s pledge, which at present prices totals nearly $1.5 million presumably to setup some kind of crypto media watchdog.
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