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News/Binance CEO Denies Interpol Red Notice Rumor Amidst Ecosystem Headwinds

Binance CEO Denies Interpol Red Notice Rumor Amidst Ecosystem Headwinds

Apr 4 2023

last year3 minutes read

CZ Binance Dismisses Allegations as FUD while Binance Faces Challenges


Written by Van -  Perfected by ChatGPT

Binance has been a dominant force for quite some time. Recently, its CEO Changpeng Zhao (CZ) found himself amidst allegations of facing an Interpol Red Notice. However, CZ was quick to dismiss these rumors as “FUD” (fear, uncertainty, and doubt).

Despite his denial, Binance and its ecosystem are confronting several headwinds. Join us as we explore the impact of these challenges on Binance, shedding light on their current struggles and future prospects.

Binance CEO Clears the Air

Social media was abuzz with rumors that CZ Binance was facing an Interpol Red Notice. The source of these allegations came from a crypto influencer named Cobie, who shared a crypto transaction with an on-chain message claiming that CZ was facing extradition. The tweet appeared to be encrypted and was not meant for the public domain, but it quickly caught fire and spread across the internet.

CZ Binance took to Twitter to deny these allegations, referring to Interpol’s website, which, as of April 4, does not list a public Red Notice for him. Cobie later clarified that the message was an enciphered rumor meant to maintain a record of something they could reveal later. However, the rumor had already caused the price of BNB and Bitcoin to plummet, causing futures traders to lose $50 million in liquidations, before recovering.


Binance Ecosystem Under Pressure

BNB Chain’s Rug Pull Problem

A recent report by the blockchain security firm Immunefi has revealed a concerning trend in the BNB Chain ecosystem, with rug pull incidents accounting for an alarming 73.3% of all occurrences in the first quarter of 2023. In comparison, Ethereum trailed behind as the second most affected platform. Rug pulls are a deceptive tactic employed by malicious developers who abruptly remove liquidity from a decentralized exchange’s (DEX) liquidity pool, causing the token’s value to plummet to zero.

This surge in rug pull incidents within the BNB Chain ecosystem is largely attributed to the widespread utilization of forked codes, which are notorious for attracting users seeking fast financial gains. This growing problem emphasizes the urgent need for stronger security measures and increased vigilance within the BNB Chain community to counteract these exploitative practices.

Binance’s BUSD Concerns

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Binance has converted over 800 million BUSD from its Recovery Fund to other cryptocurrencies, which triggered negative narratives about the world’s highest-volume crypto exchange exiting its own stablecoin amid heightened US scrutiny. The recent scrutiny and negative press surrounding BUSD have raised questions about its safety and reserves as a digital asset. The main concerns surrounding BUSD are its association with Binance and the transparency of the stablecoin’s collective collateral backing.

Binance Net Flow Volume for all stablecoins has seen larger outflows than inflows, with a net outflow of “-$295M/day,” the largest in history, according to a recent Glassnode report. This trend has not been noticed for Bitcoin and Ethereum, which have seen net inflows and sideways reserve movement, respectively.

BUSD has lost a significant chunk in dominance compared to stablecoin rivals USDT and USDC. Many investors redeemed or converted BUSD into other assets, driving the total BUSD supply down by 56% from nearly 17 billion on January 1, 2023, to just 7.5 billion today.

Binance’s Market Share Drop

Binance’s market share has dropped from 70% to 54% in two weeks due to a U.S. regulator accusing it of offering unregistered crypto derivatives products and Binance eliminating zero-fee trading for some trading pairs at the end of Q1, according to blockchain analytics firm Kaiko.

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Source: Kaiko

The loss in market share was attributed to the end of zero-fee trading after the lawsuit from the US Commodities Futures Trading Corporation (CFTC) which alleges Binance offered trading to US customers without registering, Kaiko said. Though Binance’s market dominance in trading volume decreased, it still takes in more volume than its combined rivals. Its decision to end zero-fee spot and margin trading for 13 trading pairs contributed to the drop in market share.

Withdrawal Risks and Game Theory Analysis

Considering the challenges Binance is currently facing, many users may be questioning the safety of leaving their funds on the exchange. A game theory analysis suggests that withdrawing funds from Binance is the safest option in terms of potential risks. It presents four possible scenarios and weighs the expected value of each action:

  • Successfully withdrawing funds from Binance and suffering small losses as fees, and Binance faces no trouble (-1).
  • If you withdraw funds without any restrictions, and Binance suspends withdrawals then (+100).
  • If you do not withdraw funds and Binance does not face any trouble, there is no loss or gain, but your funds stay on the exchange (-0).
  • However, if Binance later restricts withdrawals and you have not withdrawn your funds, you may incur a significant loss (-100) as you will be unable to access your funds.

The analysis highlights that leaving funds on the exchange carries a substantial negative EV risk, especially considering the complexities of navigating regulatory landscapes in certain jurisdictions. As a result, users should carefully evaluate their options and consider the potential risks associated with keeping their assets on Binance.

FAQ about Binance and BUSD

  • Q1: What is Binance and how does it work?

A: Binance is a global cryptocurrency exchange that allows users to trade various cryptocurrencies, such as Bitcoin, Ethereum, and Binance Coin. Users can deposit money, trade, and withdraw funds in a secure and user-friendly platform.

  • Q2: How do I deposit money to Binance?

A: To deposit money to Binance, you need to create an account, complete the KYC verification process, and then navigate to the “Deposit” section. You can choose your desired cryptocurrency or fiat currency and follow the instructions provided.

  • Q3: How do I withdraw money from Binance?

A: To withdraw money from Binance, simply log in to your account, go to the “Withdrawal” section, select the cryptocurrency or fiat currency you wish to withdraw, and enter the withdrawal address and amount. Follow the on-screen instructions, and don’t forget to verify the transaction via email or two-factor authentication (2FA), if required.

  • Q4: How long do Binance withdrawals take?

A: Binance withdrawal times vary depending on the cryptocurrency and network conditions. While some withdrawals can be processed within minutes, others may take hours or even days. Always check the withdrawal processing time for the specific cryptocurrency you’re withdrawing.

  • Q5: Who is CZ Binance?

A: CZ Binance, or Changpeng Zhao, is the CEO and co-founder of Binance, one of the world’s largest cryptocurrency exchanges. Born in China and raised in Canada, Zhao has extensive experience in the cryptocurrency and blockchain industries, having previously worked for and as CTO of OKCoin.

  • Q6: What is the BUSD contract address?

A: The BUSD contract address is a unique identifier on the Ethereum or BNB Smart Chain blockchain that represents the BUSD token. You can find the contract address on various blockchain explorers such as or by searching for “BUSD.”

According to each blockchain explorer, the contract codes are as follows:

Binance smart chain, BUSD contract code:

Ethereum, BUSD contract code:

  • Q7: How do I add BUSD to MetaMask?

A: To add BUSD to MetaMask:

  1. First, ensure you have the MetaMask browser extension installed and set up.
  2. Then, open MetaMask and switch to the Ethereum or BNB Smart Chain network, depending on where your BUSD tokens are.
  3. Click on “Add Token” at the bottom of the main interface, and select “Custom Token.”
  4. Enter the BUSD contract address, and the token symbol (BUSD) and decimals should auto-populate.
  5. Click “Next” and then “Add Tokens.” BUSD will now be added to your MetaMask wallet.


The recent rumors surrounding CZ Binance and the Interpol Red Notice have been debunked so far, but Binance and its ecosystem still face significant challenges. From rug pulls on the BNB Chain and concerns over the BUSD stablecoin to a decline in market share, Binance has its work cut out for it. Despite these hurdles, Binance remains a dominant player in the crypto space, and it will be interesting to see how they navigate these obstacles and adapt to the ever-changing landscape of the cryptocurrency world.

Don’t forget to stay up-to-date with the latest crypto and Binance news by following CZ Binance on Twitter and keeping an eye on the BUSD market cap. And as always, remember to do your own research, stay informed, and make educated decisions when it comes to your investments.

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