Battling the FUD: CZ Dismisses Media FUD as Binance Executives Resign

When FUD comes, it never rains but pours. Changpeng Zhao, the CEO of Binance, the world's largest cryptocurrency exchange, is once again defending the company against negative media coverage. In response to a recent article by Fortune, which highlighted the resignation of three senior executives, Zhao objected to the portrayal, stating that the company has been facing challenges for several months.

The Fortune article, published on July 7, carried a sensationalised headline suggesting that Binance was in crisis due to the departures of Binance general counsel Hon Ng, chief strategy officer Patrick Hillmann, and SVP for compliance Steven Christie.

In an effort to clear the air, Binance's Chief Compliance Officer, Noah Perlman, confirmed on Twitter that he would remain with the company to help navigate the industry's growing pains. Patrick Hillmann also tweeted that he was leaving Binance partly because his wife was expecting a baby, adding that he was doing so "on good terms".

All good right? Apparently not. From a media perspective, the resignations of these executives come as a setback for Binance, which has been contending with regulatory scrutiny from both the United States and global authorities throughout the year. The article further linked the departures to ongoing investigations by the Department of Justice, as well as legal action taken by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

In response, Changpeng Zhao took to Twitter on July 7 to address the media's portrayal of the departures as a crisis, dismissing it as fear, uncertainty, and doubt (FUD) spread by the news outlets.

He emphasised that turnover is a normal occurrence in any company, highlighting Binance's significant growth from 30 employees to 8,000 in just six years. Zhao also stressed that the company has successfully protected its customers throughout the turbulent year faced by the crypto industry.

Despite the media's attempt to undermine Binance, the impact on the company's native cryptocurrency, BNB, has been relatively minimal. At the time of writing, BNB experienced a 2.4% decline, in line with the broader market retreat. Since the SEC filed its lawsuit in early June this year, BNB has lost 24% of its value, but it still stands at a significantly higher level compared to other altcoins, which have experienced declines of 80-90% from their all-time highs.