For years, mainstream media has exhibited a harsh stance towards cryptocurrency companies, where distortions, false reports, and exaggerated headlines dominated. This landscape was largely fueled by governments’ anti-crypto stances, enabling media outlets to undermine these digital currencies. Recently, CZ, the founder of Binance, shared his first-hand experience with media blackmail.
Media’s False Claims on Cryptocurrencies
Binance, the world’s largest cryptocurrency exchange by volume, has seen rapid growth over the years. Capitalizing on the gray areas surrounding crypto since 2017, the platform has also faced intense scrutiny from regulators, leading to numerous legal challenges. The consequence of its rapid expansion was the inevitable confrontations with regulatory bodies, a challenge Binance managed to navigate successfully.
However, Binance’s journey wasn’t without obstacles. For instance, in October 2023, as tensions between Israel and Palestine intensified, US media began propagating the narrative that “attacks are funded by crypto.” This was bolstered by Democrats strongly asserting that Hamas had been accessing funds through cryptocurrencies.
Binance found itself at the center of these accusations. Several mainstream media outlets accused the exchange of either intentionally or negligently turning a blind eye to suspicious transactions. Even small transactions worth a few thousand dollars were sensationalized, casting Binance as if it facilitated illicit fund transfers akin to financing arms transactions.
Eventually, Binance settled matters by paying a billion-dollar fine and was allowed to start afresh. The exchange agreed to tighten its KYC and AML processes under regular regulatory supervision, albeit at the cost of disrupted operations in the US. Concurrently, Coinbase, backed by Trump’s strong supporters, began expanding more rapidly.
Blackmailing Binance
Revisiting 2023, some proclaimed victimhood over October’s events and had sued Binance, alleging support for Hamas. Yet, a federal court in Washington, D.C., did not view the case against the crypto exchange’s founder as credible. This sparked numerous class action cases, as many in the US saw litigation as a lucrative opportunity. Fortunately for Binance, it navigated through these challenges.
CZ recently revealed a more disturbing threat, casting doubt on the true motives behind the media onslaught during that period.
“People make a profession out of this. Someone demanded I pay $4.4 billion (yes, billion), or they would spread fabricated stories like ‘Binance aided terrorists’ to the media. I was threatened. We have always chosen to fight for justice!”
Perhaps the mastermind behind this threat, or others, influenced mainstream media to publish negative stories about Binance during that time.