Binance CEO denies claims of an Interpol Red Notice filed against him, cites Photoshop

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Binance CEO Changpeng Zhao, otherwise called CZ, has come forward to deny the rumors that Interpol had issued a Red Notice against him.

This is a photoshopped image. 4 https://t.co/vE5XlvvuQt

— CZ 🔶 BNB (@cz_binance) April 3, 2023

The rumor originated from Cobie, a renowned Twitter user with a massive following. His post was an encrypted message tweeted in a sequence of letters and numbers using the SHA-256 hash function.

Notably, many cryptocurrencies, including Bitcoin, use this same cryptography for security. When interpreted, the message reads, “Interpol Red Notice for CZ.”

What A Red Notice Would Mean For Changpeng Zhao

An excerpt from the Interpol website stipulates that a Red Notice is “A request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.” Further, the site explains that the requesting member country or international tribunal would want the individuals cited in the Red Notice.

Nevertheless, it turns out the rumor was a falsification by Cobie, according to CZ, who addressed it at around 21:51 UTC on April 3. Moreover, the Binance executive proceeded to pass an investor tip to community members, advising them against panic selling on every whisper of FUD.

If you panic sell on FUD or photoshopped images, well, you aren’t likely to become rich.

Block the FUD sources.

— CZ 🔶 BNB (@cz_binance) April 3, 2023

The advice came as traders reacted to Cobie’s post with fear, hedging their Bitcoin (BTC) and Binance Coin (BNB) holdings to avoid any losses that would follow.

Not The First Rumor Against Binance

Notably, this is not the first rumor about Binance or its CEO that has gone viral. Early in March, rumors circulated in WeChat in China, saying that the Federal Bureau of Investigations (FBI) agents had shot CZ.

Someone photoshoped this, and it got spread widely on WeChat in china. It says I got shot by the FBI, whom our team work with closely… 🤷‍♂️ 4. pic.twitter.com/2Iz7c1QgA8

— CZ 🔶 BNB (@cz_binance) March 3, 2023

CZ shared CZ the photoshopped image of the Twitter feed of the Chinese edition of The New York Times. While to “Ignore FUD, fake news, attacks, etc.” was among the New Year resolutions of CZ, the Binance executive has had a rough time of it so far in 2023. When asked about the strange rumor of being shot by U.S. law enforcement, CZ kept his response light, saying the Binance team works closely with the FBI. He also punctuated the response with a “shrug” emoji.

Commenting about another Twitter user’s post, CZ indulged in a little joke at the expense of anyone who believed the fake story and sold his or her cryptocurrency because of it.

If you sold on someone’s photoshopped fake image, then I feel sorry for you, but not really… 😂 https://t.co/pRfC2Jsqz5

— CZ 🔶 BNB (@cz_binance) March 3, 2023

Binance Coin Price Suffers Rumor-Infused FUD

Cobie’s post spread fast because of his track record on Crypto Twitter, being a voice of insight information. Notably, chatter around the rumor was so loud that traders reacted, causing BTC and BNB prices to plummet.

Minutes after Cobie’s post, BTC shed around 1% while BNB was down around 3%. The latter, which is the native token for the Binance ecosystem, recorded a sky-high trading volume, up almost 60%. This hinted at increased trader activity, either selling their BNB holdings or moving them from the Binance exchange.

It is worth mentioning that the comment by Changpeng Zhao to discredit the rumor was a success, as both Bitcoin and Binance Coin prices started to rise minutes after.

At the time of writing, Bitcoin price is up around 0.16 in the last 24 hours to auction for $27.981. On the other hand, BNB price is up 0.23% over the same timeframe to exchange hands for $310.98. Trading volume remains high for Binance Coin, up 48.21 on the last day.

Binance and CEO Still In The Woods

Binance exchange and its CEO are still not in the clear, given there is still Fear, Uncertainty, and Doubt (FUD) after the recent lawsuit.

As reported, the Commodity Futures Trading Commission (CFTC) filed a case against the largest cryptocurrency exchange by trading volume and CEO on alleged federal law violations. Noteworthy, the lawsuit caused many to speculate an impending lawsuit from the United States Department of Justice (DOJ), among other criminal charges.

In efforts to restore calm among community members, CZ penned a letter, clearing his name and that of his company, Binance. In the letter, he addressed technology for compliance, U.S. blocks, cooperation and transparency with law enforcement, trading, and registrations and licenses. The letter concluded with a no-bias assertion from the Binance executive “I strictly observe these policies.”