© Reuters
Investing.com – Binance has denied rumors that its boss Changpeng “CZ” Zhao is the subject of a red notice issued by the International Criminal Police Organization (Interpol) to locate and arrest the founder of the largest cryptocurrency exchange in the world.
“This rumor is not true,” the spokesperson said in a statement emailed to several crypto news outlets.
The rumor, which was amplified by popular Twitter user (NYSE:) “Cobie”, caused the price of Binance’s BNB token to plummet as well as the market in general, albeit to a limited extent.
Separately, Binance’s denial appears to have been enough to undo the decline, with BNB back above $28,000, and BNB posting a 1% 24-hour gain.
Recall that in a tweet, Cobie shared a sequence of numbers and letters encrypted using the SHA-256 hash function, which he says shows that CZ is the subject of a red notice.
Recall that Binance is currently in the crosshairs of US regulators, and more specifically the Commodities Futures Trading Commission (CFTC), which last month announced legal action against the platform and its founder, accusing CZ and Binance of having violated the Commodity Exchange. Act and other CFTC regulations.
Finally, a red notice is a request to law enforcement agencies around the world to locate and arrest a person pending extradition, surrender or similar legal action.
It is also following a red notice that the co-founder of , Do Kwon, was recently arrested in Montenegro.