Binance Founder Rejects 60,000 BTC Profit Allegations on BitMEX

Changpeng Zhao (CZ), the Binance founder, has recently denied allegations regarding trades on BitMEX. Changpeng Zhao has refuted the claims of Binance’s trades on its rival entity, BitMEX, during the notorious COVID-19 market collapse of March 12, 2020. As per CZ’s official X post, the accusations that Binance profited more than 60,000 $BTC via the alleged BitMEX hedging activity are “fake news.” He additionally emphasized that the crypto exchange never traded on BitMEX.

CZ Refutes Allegations of Profiting 60,000 $BTC on BitMEX

While responding to the claims of Binance’s profit-making of up to 60,000 $BTC via BitMEX-based hedging activity, Changpeng Zhao has refuted them. CZ added that Binance never performed any trading on BitMEX. Additionally, CZ asserted that the withdrawal procedure of BitMEX takes place just once a day, making the claim inconsistent with functional realities. The controversy started when a tweet from “Flood,” a crypto commentator, claimed that Binance stood atop the most profitable trading companies on BitMEX during the crash of 2020.

As per the commentator, during the COVID-19 market crash, Binance allegedly recorded the biggest withdrawal as well as profit and loss (PnL). The respective post obtained market-wide traction, triggering significant engagement on social media. However, CZ dismissed this accusation, saying that the crypto exchange did not carry out any trade on BitMEX.

CFTC Complaints Fuel Binance’s Ongoing Challenges

In this respect, Changpeng Zhao stressed that the co-founder of BitMEX, Arthur Hayes, who is his friend, would have known such an operation if it had taken place. This development has occurred at a time when the U.S. Commodity Futures Trading Commission (CFTC) has submitted complaints against Binance. The regulator has referred to the crypto exchange’s alleged failures in compliance when it comes to derivatives trading.