Binance CEO Probes Rise in Trading of Underdog Altcoins Amid Ongoing Turmoil

Changpeng Zhao, the CEO of Binance, has justified the trading of certain underdog altcoins on its platform as merely a ‘market behaviour’. In recent days, trading activities for Sun Token, Ardor, Osmosis, FUNToken, and Golem witnessed an escalation on Binance, stirring suspicions among members of the crypto community amid the ongoing market slump. The overall crypto cap dipped by over $200 billion (roughly Rs.16,51,771 crore) in the past few weeks after the FTX crypto exchange dramatically collapsed due to liquidity crunch leaving investors high and dry.

The rather offbeat trade movement of SUN, ARDR, OSMO, FUN, and GLM made people wonder if some accounts on Binance were compromised with stolen keys.

The official Twitter handle of Binance revealed that the company conducted an internal probe to check if bad actors were targeting the exchange.

Zhao further revealed that the platform had frozen withdrawals on some accounts that had reeled in profits from the trading of these altcoins as part of its investigation.

Binance has been trying to regain investors’ trust in order to fetch the market out of the ongoing downturn.

The exchange, last month, opened an industry recovery fund and pitched in $1 billion (nearly Rs. 8,200 crore) from its own pockets.

The exchange also got its proof-of-reserves audited to ensure its users that the platform can handle all withdrawals.

The company is now betting big on finetuning the cyber security sector.

On Monday, December 12, Binance Labs led an investment round for GoPlus Security with an undisclosed amount.

“With this funding, GoPlus Security will be able to build out their technology, create a security services marketplace and also attract top talent looking to build a more secure, user-friendly Web3,” Binance Labs wrote in its official blog post.