- CZ allegedly manipulated token prices, causing hundreds of millions in retail investor losses within days.
- Binance remains a top exchange; BNB surges as blockchain’s long-term potential keeps investor optimism alive.
- Trump’s pardon reignites debate over crypto regulation, billionaires’ accountability, and market oversight.
Crypto markets are under fresh scrutiny as Binance CEO Changpeng Zhao, or CZ, faces claims of running massive pump-and-dump schemes. NoLimit on X alleges he bought 10–20% of easily manipulated tokens, listed them on Binance, and then sold them after prices spiked 10–100×.
These actions reportedly caused losses of hundreds of millions for retail investors. NoLimit highlighted that some coins, including PALU, DUST, and BNBHolder, dropped by 81%, 93%, and 98% within days.
This controversy comes shortly after Zhao’s pardon by US President Donald Trump. Zhao had served four months in prison in 2024 for violating US money laundering laws.
Binance also pleaded guilty and paid $4.3 billion in fines after a US investigation revealed it helped users bypass sanctions. White House Press Secretary Karoline Leavitt defended the pardon, calling Zhao’s prosecution an overreach by the Biden administration and describing it as part of a “war on cryptocurrency.”
Zhao’s Perspective and Market Potential
Besides facing public backlash, Zhao continues to emphasize the long-term potential of blockchain technology. In a recent post on X, he noted that although the crypto market remains “tiny,” its underlying technology holds “unrealized” opportunities.
Binance, with a market value of $1.22 billion, is still one of the largest cryptocurrency trading platforms in the world in terms of trade volumes. However, its Binance Coin (BNB), which is its cryptocurrency, is trading at $884.377, an increase of 1.4% in the last 24 hours, with a retail sentiment that is ‘extremely bullish.’
However, critics argue that actions attributed to Zhao undermine investor confidence. NoLimit pointed out that such manipulation discourages newcomers, as losing nearly 99% of one’s investment overnight erodes trust in crypto markets.
Furthermore, such events also cause the discussion on regulation and the special treatment of billionaires to become even more heated. This makes the crypto world a divided one that balances the potential of the blockchain technology with the mistrust of the heads of the centralized markets.
