Binance CEO Changpeng Zhao has poured cold water on suggestions that the Binance empire is in trouble following an alleged police raid on its Shanghai office. The Block reported that Binance’s Shanghai office had been “shut down” following a police raid, suggestions that Zhao immediately rubbished before getting involved in a Twitter discussion relating to China’s announcement earlier in the week that they were planning a crackdown on crypto entities in the city.
Binance’s Shanghai office shut down following police raid – sources https://t.co/YSiVf1ClIp
— Celia Wan (@celiawan2) November 21, 2019
“No Police, No Raid, No Office”
News of Shanghai’s crypto crackdown emerged at the start of the week, with financial news site Caixin reporting that businesses conducting cryptocurrency trading, token sales, and token distribution from overseas initial coin offerings (ICOs) were facing investigation and probable closure. China-based reporter Cecilia Wan reported through The Block that Binance’s Shanghai offices had been raided by police and shuttered, which Zhao instantly disputed, stating that there was “No police, no raid, no office,” in Shanghai. This denial prompted Wan, and some Twitter users, to investigate these claims further. Zhao followed up his initial denial with another, saying that “Office and HQ are old concepts like SMS and MMS”, referencing the large amount of remote workers the company employs.
Wan came back with evidence that Binance does have a Shanghai office, and the debate soon moved onto the definition of an office, ignoring the fact that The Block had stated that a police raid was the cause of the closure, something Zhao was understandably keen to have clarified:
You can argue about the semantics of an office, who leased it, for how long, if it is empty, etc. But you can’t argue about the semantics of a “police raid” that did NOT happen. Without the fake “police raid”, there is no article. Pure FUD! https://t.co/o6xXwrU5WK
— CZ Binance (@cz_binance) November 22, 2019
The Block journalist Larry Cermak soon announced that the outlet was looking into the police aspect, suggesting that Zhao may have had a point:
Whether police was involved is now in question and our journalists are speaking to sources who are giving contradicting statements. It’s possible it was a precautionary move that was triggered by the increased regulatory pressure. The journo team is working hard to update
— Larry Cermak (@lawmaster) November 21, 2019
Following this apparent checking of facts, The Block Tweeted an update, stating that, “The Block stands by our sources and reporting that Binance’s Shanghai office was shut down.” Zhao, clearly angered by the lack of substantiation regarding the police raid rumors, made his feelings known:
No standing by that there was “a police raid”? WTF man! https://t.co/Qi1trHuIpI
— CZ Binance (@cz_binance) November 22, 2019
When the dispute had finally settled down, Zhao seemed to have the final say following a report that 39 “illegal cryptocurrency” companies had been identified as part of the Shanghai sweep, saying that it was good news but “wait for the “police raided” xyz headlines”. Zing!
