Binance CEO Changpeng Zhao has become the pied piper of the crypto world. Luring in millions of crypto users with his easy-to-use and appealing exchange platform.
But much like in the fairy-tale, there is a darker side to this operation. Behind the scenes, Binance has routinely sidestepped regulations, ignoring many of the foundational laws that make the crypto economy a level playing field.
CZ has suggested users in blocked countries use VPNs to pass regulations, the company is in hot water for using questionable banking partners to get around legitimate organizations, and Binance has been accused by multiple parties for a listing-fee process that harkens to bribery.
Just this week, a Chinese microblogging website, Weibo, banned the official account of Binance over reported “violations of laws, regulations, and the relevant Weibo Community Pact.” While Chinese regulations are known to be extra stringent, it is also hint at the wild-west ways of an exchange that simply refuses to bend to regulations.
None of this paints CZ or Binance in a positive light, but there is nothing more questionable than BCF, the Binance Charity Foundation.
Launched in 2018, BCF was CZ’s way of shutting up the rumors surrounding Binance’s listing fees and their surrounding ambiguity. Since Binance was launched, the topic of listing fees was a sore point. According to the co-founder of an Ethereum-forked Expanse, he was quoted a listing fee of 400 BTC, a fiat equivalent of $2,5 million at the time. It seemed Binance was running a pay-for-play scheme, and it was working for them.
Rather than owning the fact that their listing fees are expensive, CZ and his band of merry men insisted on playing coy, not answering listing-fee questions directly, and toying with Twitter followers with sarcastic tweets insulting “sh*tcoins”.
But when CZ realized his game wasn’t working, and people actually cared about principles of fairness and transparency, he announced that Binance would now be…