Binance is one of the most prominent firms within cryptocurrency and everything they do is closely watched by their supporters. This was why when earlier this week when it was reported that Binance’s Shanghai office had been closed down by authorities, most of the crypto world was sent into a frenzy with many interested to hear the details. However, it would seem that these reports were not true as Binance came out to deny the closure of the Shanghai office and the existence of a Shanghai office in the first place. The entire incident was a lesson in false news being spread.
According to a Twitter exchange from November 20, 2019, Changpeng Zhao, who is the CEO of Binance, has stated that the company will be taking legal action against the Block, which is the media outlet that broke the now-debunked story.
The story published by the Block was titled “Binance’s Shanghai office shut down following visit by authorities, sources say” and was first released on Friday. It is believed that the market reacted negatively to this news, with the bitcoin price falling below $7,400 per token. After Binance came out to refute these rumors, they demanded an apology from the Block and ruled out any legal action. The Block, however, doubled down on their stance and released a follow up defending their reporting of the supposed closure.
This action apparently was the tipping point which made Zhao and Binance choose to pursue legal action which was an option they initially said would be too much trouble.
“Instead of apologizing to the community for the fake headline news of the non-existent ‘police raid’, which damaged our reputation, and $btc price, the Block now tries to argue if there was an office, if CZ had a meeting… who cares? Own up & apologize for your mistake,” Zhao said.
The publication has not yet taken down the story though some of the details have been changed to clarify that it was alleged information from sources that have not been named. Either way, this entire saga seems to have only begun for both of the Block and Binance.