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Binance: Shanghai Office Shut Down Is Fake News
November 21  |  3 min read

Fake News of Binance’s Shanghai Office Shut Down Possibly Led to Crypto Market Crash

The COIN360 Editorial Team

Binance’s Shanghai office was reportedly raided by the local police and had to shut down following a Chinese authorities’ crackdown on cryptocurrency-related businesses and activities, according to news posted on The Block. Their sources shared that the office was a workplace for up to 100 employees and executives, who now have to work remotely or move to Singapore.

A recent tweet by Binance CEO Changpeng "CZ" Zhao, in which he calls offices and headquarters “old concepts” was considered as another proof of Binance’s Shanghai office shut down.

CZ Binance claims that offices are outdated on Twitter

However, a Binance spokesperson denied the police raids and office shut down for one simple reason: Binance has no offices in Shanghai. According to the spokesperson, Binance doesn’t have any fixed offices in China at all, and the exchange’s workflow is kind of decentralized with employees working remotely from different parts of the world.

After the fake news of Binance’s Shanghai office spread, the crypto market experienced a precipitous drop. Bitcoin (BTC) plunged from $8,100 to $7,466, which is an almost 8% drop. Other top cryptocurrencies suffered losses from 3 to 10% for the day. Ethereum (ETH) lost 8% and is trading at $160. Ripple (XRP) is the smallest loser in the top 10, with a 2.8% loss. The Binance Coin (BNB) price declined by 3.2% and is now $16.8.

Cryptocurrency Prices Chart on COIN360

It’s not the first time a crypto media disseminated fake news about Binance’s offices in China. In October, Coindesk wrote that Binance was opening an office in Beijing, citing “two sources with knowledge of the matter.” In an interview with Bloomberg Markets: Asia, Changpeng Zhao laughed and claimed that it was a rumour and Binance didn’t have offices in Beijing.

Following Changpeng Zhao’s declaration, Larry Cermak, an author at The Block, demanded that Coindesk corrected their article on Binance’s non-existing Beijing office.

Larry Cermak of The Block demanded Coindesk correct their article

At the moment, the whole crypto community is wondering whether The Block will issue a correction to their fake news on Binance’s Shanghai office shut down.