Is Binance for sale, and to whom? Yi He addresses rumors

Source Cryptopolitan

On Monday, Binance co-founder Yi He denied rumors that the cryptocurrency exchange is up for sale, calling the speculation “baseless” and “fueled by competitors.” Her dismissal comes after some members of the crypto community alleged that Binance could be sold to an unmentioned decentralized exchange.

Yi refuted the claims on X. She stood ground that while Binance engages in discussions with institutional investors, there are no plans to sell the company. 

Since Bitcoin’s price broke through new highs, trading platforms have been validated as a viable business model within the ecosystem. Following the principle of investing in leaders, every month institutions are asking if Binance accepts investment and cooperation,” she explained.

Ex-CEO Changpeng Zhao and Yi He challenge sale claims

Through a repost, former Binance CEO and shareholder Changpeng “CZ” Zhao supported Yi He’s message, explaining that speculation about a sale was being spread by “small-scale competitors in Asia.” He dismissed the claims by reiterating “Binance was not for sale.”

The rumors stem from an excerpt from an uncorroborated news article shared on social media. The publication claimed Binance was set to be sold to a DEX due to operational malfunctions.

In her post, Yi acknowledged that Binance is still open to partnerships and potential mergers. However, she reiterated that this does not mean the company is actively seeking buyers. 

We do not rule out introducing strategic partners and are open to mergers and acquisitions. If other trading platforms have plans to sell, please feel free to contact us,” she concluded.

Binance and CZ still facing SEC case

Binance is still facing legal hurdles particularly with the US Securities and Exchange Commission (SEC). However, last Tuesday, US District Judge Amy Berman Jackson approved a joint motion filed by the SEC. Now, Binance, and Zhao are to pause proceedings for 60 days.

As reported by Cryptopolitan, the SEC is expected to use this time to review its existing cases in the crypto industry. Several entities, including Binance and Ripple Labs, are hoping most of the cases will be taken down. They have tied their hope on the shift to a more crypto-friendly approach. This comes following the departure of the infamous former chair Gary Gensler.  

The regulator originally sued Binance in June 2023, accusing the exchange of artificially inflating trading volumes, mismanaging customer funds, and misleading investors about its market surveillance mechanisms.

Five months later, the US Department of Justice (DOJ) announced that Binance agreed to pay a fine of over $4 billion for supposedly breaching the Bank Secrecy Act (BSA), failing to register as a money-transmitting business, and violating the International Emergency Economic Powers Act (IEEPA).

Changpeng Zhao also pleaded guilty to not implementing an effective anti-money laundering (AML) program under the BSA and agreed to resign from his role as Binance CEO. 

Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” said Former Secretary of the Treasury Janet Yellen.

On February 3, through news aggregator Binance Square, co-founder Yi He revealed the exchange had conducted more than 120 internal audits. The exchange worked in coordination with US law enforcement. These investigations reportedly resulted in the termination of 60 employees for violating company policies. In addition, they recovered of over $32M in illegal transactions.

Yi stated that Binance is currently facing two ongoing lawsuits and prosecutions, but she did not disclose details about the cases, or if they are related to the SEC lawsuit.

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