Binance’s CEO has directed his exchange’s investigation team to look into allegations made by insider FatMan of fraud against the founder of Terraform Labs and the Terra 2.0 project.
Changpeng Zhao in an interview with Fortune said, which is familiar with FatMan’s accusatory tweets against Do Kwon and Terra. However, it cannot confirm or deny them until the exchange’s investigation team checks each of the allegations made by a community member against the creator of Terra.
FatMan alleged that Terra manipulated the markets, paid compensation to exchanges and third parties, created conditions for insider trading, concealed financial data in the Kernal Labs cloud storage, and evaded taxes.
Speaking of “due diligence,” Changpeng Zhao said he was very surprised when reports surfaced that Do Kwon was behind Basis Cash, but was even more surprised that his team didn’t know about it.
This statement of the head of Binance immediately caused caustic comments from the very author of the FatMan sensation.
“Wow, interesting, Zhao himself is not to blame for anything, he is a busy man. The burden of responsibility falls on its sloppy marketing and listing team. But, unfortunately, someone will have to pay the bills … “- wrote Fat Man on Twitter.
Expressing Binance’s official position, Changpeng Zhao stated that he has always opposed the idea of an algorithmic stablecoin UST and Do Kwon’s plan to revive UST and LUNA tokens. What’s more, Binance took extra care in listing the new LUNA token and listed it in the “innovation zone,” a high-risk token spot.
“Binance has a group of investigators. We are not a law enforcement agency, but we are always cooperating with security authorities to help uncover fraud. The exchange will review the available information and examine the blockchain data to gather evidence related to the allegations.” informed Changpeng Zhao in a conversation with Fortune.
After the default of the Terra project, the South Korean authorities decided to form a digital asset committee by the end of June, which is responsible for protecting cryptocurrency investors.
Source: Bits
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