Binance Exchange, one of the largest crypto exchanges in the world, has announced plans to sue a major crypto media outlet, The Block. This is after the said media outlet published false reports of a “police raid” by Chinese authorities targeted at an office belonging to Binance in the city of Shanghai, China.
Many crypto experts now believe that the false news may have caused the current market crash that has seen Bitcoin drop below the $7,000 mark. In effect, the rest of the market has followed suit, with the likes of ETH, XRP, LTC, and BNB losing by significant percentages.
Apparently, there was no raid at any Binance offices in China. However, it’s true that some exchanges belonging to scammers operating ponzi schemes were raided by the Chinese authorities, although these happened in Shenzhen and not Shanghai. According to a tweet by one content creator, Boxmining, Bithumb and Binance were not raided and that the exchanges raided only served Chinese customers. Binance is a world-class crypto exchange with established presence in many parts of the world.
Binance CEO Changpeng Zhao also sent out a tweet confirming that no raid took place at any Binance offices.
The Block’s publication of the false reports caused a pretty significance backlash, forcing the media outlet to refine the headline to omit the raid part. It rephrased the “raid” as a “visit.” However, the website’s URL to the particular news page still bore the “raid” phrase. Various entities within the crypto community have called out The Block, demanding an official apology, but The Block’s Mike Dudas didn’t seem inclined to send out any apologies. Some even wanted The Block to pay a heavy price for repeatedly publishing false reports about Binance.
The failure of the website’s management to apologize has antagonized people like CZ (Changpeng Zhao). In a follow-up tweet, CZ expressed his displeasure with the The Block’s attempt to deflect attention away from its false report by claiming that there was a Binance office in China and that CZ had a meeting. CZ wasn’t impressed by The Block’s attempt at diversionary tactics instead of simply apologizing for the false reporting that may have damaged Binance’s reputation and affected crypto prices.
In another response, CZ said that Binance will be suing The Block.
A Special Fund To Combat FUD
Granted, the crypto space has seen its fair share of FUD (Fear, Uncertainty, and Doubt) issues dished out by people and publications that don’t support cryptocurrencies. People like Warren Buffet have gone as far as terming cryptos, and Bitcoin in particular, as scams – which is obviously a very radical and false assertion.
Binance CEO CZ sent out a tweet suggesting that businesses in the crypto space should set up a special fund to combat FUD.
TRON's CEO Justin Sun bought the idea right away, pledging to contribute 100 Bitcoins towards that cause.
As expected, The Block’s Mike Dudas didn’t take that proposal kindly.
However, someone might have seen that coming and predicted Mike’s reaction way ahead of events.
If Binance makes good on its threat to sue The Block, it will be interesting to see how such a suit could turn out. If successful, it could work to scare off fear-mongers and stem false reporting in the crypto industry.