TLDR
- Former Binance CEO CZ and co-founder Yi He have rejected claims about potential sale of the exchange
- The company clarified that recent large asset movements were due to treasury accounting changes
- Binance indicated openness to small stake sales while maintaining majority control
- French authorities are investigating the exchange for alleged money laundering
- A 60-day pause has been granted in the ongoing SEC case against Binance
The cryptocurrency market buzzed with speculation last week as Binance, the world’s largest crypto exchange, faced rumors about a potential sale. Both co-founder Changpeng Zhao (CZ) and chief customer service officer Yi He stepped forward to address these claims head-on.
Taking to X on February 17, 2025, CZ dismissed the sale rumors, pointing to what he described as misleading information from an Asian competitor. The former CEO, who maintains a large ownership stake in the company, made it clear that while Binance isn’t for sale, the door remains open for small-scale investment opportunities.
The market chatter began after observers noticed large-scale movements of Binance’s crypto assets, including Bitcoin holdings. These movements prompted questions about the exchange’s financial health and future plans. Binance quickly clarified that these transfers were part of routine treasury management procedures.
Yi He added weight to CZ’s statement by not only rejecting sale rumors but also hinting at Binance’s interest in potential acquisitions. She invited other exchanges considering sales to reach out, positioning Binance as a buyer rather than a seller in the market.
The exchange has outlined a potential path for future investment, with CZ mentioning the possibility of accepting “single-digit percentage” investments from top-tier investors. This marks a shift from Binance’s traditional stance on private ownership while ensuring the company maintains firm control over its operations.
Chinese social media platforms fueled speculation with posts suggesting Binance planned to sell due to mounting regulatory pressures and market shifts toward decentralized exchanges. These claims, which didn’t name potential buyers, were firmly rejected by the company’s leadership.
Despite facing various challenges, Binance continues to dominate cryptocurrency trading volumes globally. The exchange processes billions in daily transactions, maintaining its position as the industry’s leading platform while competing with other centralized exchanges.
Regulatory Issues
Recent regulatory developments have kept Binance in the spotlight. French authorities launched an investigation examining the exchange’s activities between 2019 and 2024, focusing on potential connections to money laundering and tax fraud. Binance has denied these allegations.
In the United States, the exchange recently secured a 60-day pause in its ongoing case with the Securities and Exchange Commission (SEC). Both parties will use this time to assess whether to extend the stay or resume legal proceedings, potentially marking a turning point in Binance’s regulatory challenges.
The pause comes after CZ completed his four-month prison sentence for violating U.S. Anti-Money Laundering laws. Following this, Richard Teng took over as CEO, emphasizing the company’s commitment to regulatory compliance.
Binance maintains that its recent asset movements were purely administrative adjustments. The company has repeatedly assured users that their assets remain fully backed on a 1:1 basis, addressing concerns about financial stability.
The exchange regularly attracts interest from potential investors, according to Yi He. While current plans don’t include immediate shareholding changes, the openness to future minority investments suggests a strategic approach to strengthening the company’s market position.
Market analysts have noted that accepting minority investments could provide Binance with additional institutional credibility while maintaining its operational independence. Any such move would represent a calculated evolution in the exchange’s business strategy.
The current ownership structure remains predominantly private, with CZ holding a substantial stake. Future minority investments would allow institutional players to gain exposure to the world’s largest crypto exchange while ensuring continuity in management and strategy.
Yi He’s comments about acquiring other exchanges rather than selling highlight Binance’s confidence in its market position. This stance, combined with the possibility of accepting minority investments, suggests a long-term strategy focused on growth and market consolidation.
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