Binance Co-Founders Refute Exchange Sale Rumors


TLDR

  • Binance co-founders Changpeng Zhao (CZ) and Yi He firmly denied rumors that the cryptocurrency exchange is for sale, with CZ indicating openness to potential minority stake investments of “single-digit percentage range”
  • The rumors emerged after sharp reductions in Binance’s asset holdings were noticed, which the company explained as regular treasury accounting adjustments
  • Yi He suggested Binance is more interested in acquiring other exchanges rather than being sold, inviting exchanges to reach out if they’re considering selling
  • CZ attributed the sale rumors to misinformation spread by a competitor in Asia
  • The exchange continues to face regulatory scrutiny, including a French investigation into alleged money laundering, while its SEC case in the US has been paused for 60 days

Binance co-founder Changpeng Zhao (CZ) and fellow co-founder Yi He have strongly rejected rumors that the cryptocurrency exchange is up for sale, while revealing the company might consider offering small ownership stakes to investors in the future.

On February 17, 2025, CZ took to social media platform X to address growing speculation about a potential sale of the world’s largest cryptocurrency exchange. He pointed to what he called a “lowly self-perceived competitor in Asia” as the source of false information about Binance being for sale.

The rumors gained traction after users noticed major movements in Binance’s cryptocurrency holdings, including Bitcoin, leading to questions about the exchange’s financial status. Binance responded by explaining these movements as routine adjustments in its treasury accounting process, emphasizing that user assets remain fully backed on a 1:1 basis.

Yi He, who serves as Binance’s chief customer service officer, echoed CZ’s denial of the sale rumors. She went further by suggesting that Binance is actually in a position to acquire other exchanges, inviting those considering selling to reach out to the company.

While firmly rejecting the possibility of a complete sale, CZ did reveal that Binance might be open to accepting investment from top investors in the future. “Over time, we may allow some investments in the single-digit percentage range,” he stated, indicating a potential shift in the company’s historically private ownership structure.

Regulatory Challenges

The sale rumors intensified following a viral post on Chinese social media that claimed Binance was planning to sell due to regulatory challenges and a shift toward decentralized exchanges (DEXs). The post did not identify any potential buyers.

Binance continues to process billions of dollars in daily trading volume, maintaining its position as the cryptocurrency industry’s largest exchange. The company has faced increased competition from other centralized exchanges while dealing with various regulatory challenges.

In France, authorities have launched an investigation into Binance over allegations of money laundering and tax fraud. The Paris Public Prosecutor’s Office is examining the exchange’s activities between 2019 and 2024, with a focus on potential connections to drug trafficking-related money laundering. Binance has denied these allegations.

The exchange’s legal situation in the United States shows some signs of progress. The U.S. Securities and Exchange Commission (SEC) and Binance recently filed a joint motion to pause their legal case for 60 days, which was approved. At the end of this period, both parties will evaluate whether to extend the pause or resume legal proceedings.

This development follows CZ’s completion of a four-month prison sentence after pleading guilty to violating U.S. Anti-Money Laundering laws. Following his departure from the CEO position, Richard Teng took over leadership of the exchange, putting regulatory compliance at the forefront of Binance’s priorities.

The company maintains that its asset movements were purely administrative and not connected to any potential sale preparations. Binance has repeatedly stated that all user assets are secure and fully backed.

Yi He’s comments suggest that Binance frequently receives interest from potential investors, though the company currently has no plans to dilute its shareholding. The exchange’s openness to future minority investments could represent a strategic move to strengthen its financial position while maintaining operational control.

Binance’s current ownership structure remains private, with CZ holding a major stake in the company. Any future decision to accept outside investment would mark a change in strategy for the exchange, potentially allowing institutional investors to gain a small ownership position in the crypto industry’s most influential trading platform.

The most recent developments indicate that while Binance’s asset movements raised questions in the crypto community, both co-founders have firmly stated the exchange is not for sale, with Yi He actively suggesting Binance’s interest in acquiring rather than being acquired.