Binance Co-Founders Deny Sale Rumors, Open to Minority Stakes

Binance Co-Founders Deny Exchange Sale Rumors, Open to Minority Stake Investments

Binance co-founders Changpeng Zhao (CZ) and Yi He have refuted rumors suggesting that the world's largest cryptocurrency exchange is up for sale. In a series of statements, they clarified the company's stance on potential investments and acquisitions.

CZ took to social media platform X to address the growing speculation about a potential sale of Binance. He attributed the rumors to misinformation spread by a competitor in Asia and emphasized that Binance is not for sale. However, he hinted at the possibility of allowing small ownership stakes to top investors in the future, stating, "Over time, we may allow some investments in the single-digit percentage range."

Yi He, Binance's chief customer service officer, echoed CZ's denial of the sale rumors. She went further by suggesting that Binance is actually interested in acquiring other exchanges, inviting those considering selling to reach out to the company.

The rumors gained traction after users noticed major movements in Binance's cryptocurrency holdings, including Bitcoin. Binance responded by explaining these movements as routine adjustments in its treasury accounting process, emphasizing that user assets remain fully backed on a 1:1 basis.

Regulatory Challenges

The sale rumors intensified following a viral post on Chinese social media that claimed Binance was planning to sell due to regulatory challenges and a shift toward decentralized exchanges (DEXs). The post did not identify any potential buyers.

Binance continues to process billions of dollars in daily trading volume, maintaining its position as the cryptocurrency industry's largest exchange. The company has faced increased competition from other centralized exchanges while dealing with various regulatory challenges.

In France, authorities have launched an investigation into Binance over allegations of money laundering and tax fraud. The Paris Public Prosecutor's Office is examining the exchange's activities between 2019 and 2024, with a focus on potential connections to drug trafficking-related money laundering. Binance has denied these allegations.

The exchange's legal situation in the United States shows some signs of progress. The U.S. Securities and Exchange Commission (SEC) and Binance recently filed a joint motion to pause their legal case for 60 days, which was approved. At the end of this period,