Binance held a community Ask Me Anything (AMA) today to address the negative rumors circulating in the market about internal misconduct at Binance. During the AMA, Binance co-founder He Yi stated that Binance has conducted over 120 internal reviews of its own employees in the past two years, resulting in the termination of over 60 employees and the recovery of $30 million in illicit proceeds. In addition, He Yi also mentioned that Binance considers various factors such as market value and the issuing group when listing a new coin.
(Previous summary: He Yi responds to “Binance’s top five corrupt scandals”: employees involved in illegal activities will be sent to prison, let them be disgraced!)
(Supplementary background: Binance Labs renamed “YZi Labs” and transitioned to CZ Family Office: focusing on investing in Web3, AI, and biotechnology)
Recently, an anonymous article appeared on Medium, accusing the exchange Binance of engaging in activities such as benefiting from listing, internal corruption, connections between internal and external parties, and harshly deducting listing fees from projects. This has sparked widespread discussion in the market.
In response, Binance co-founder He Yi published a lengthy article yesterday attempting to clarify the situation and emphasized that if any Binance or Binance-related employees demand financial assets from any project or partner, they will be sent to prison and their reputation will be ruined. Furthermore, He Yi explained the recent rumors and controversies in the cryptocurrency community during the Binance community AMA held today. He even choked up during the event.
Here are the key points from the AMA:
Key Points from Binance AMA
In the AMA, He Yi expressed the importance of internal employee reviews, as the community’s main concern regarding Binance is “employees embezzling from the company.” He stated that Binance currently has two law enforcement coordinators in the United States and has conducted over 120 internal audits in the past two years:
Over 60 people have been terminated for violations, recovering a total of $30 million in illicit proceeds. Currently, there are two lawsuits and criminal cases.
In addition, regarding the frequent discussion of “listing doubts” in the community, He Yi used the previously popular AI project Ai16z as an example, explaining:
By the time the token is considered for listing, its market value is already significant. Binance internally discusses whether there will be a “peak immediately after listing,” resulting in differing opinions.
Additionally, for meme coins whose background is issued by the issuing group, Binance is cautious about listing such projects.
Furthermore, He Yi also reiterated during the AMA that he no longer holds a position on the YZi Labs investment committee and does not have any influence on YZi Labs:
The YZi Labs investment committee is currently mainly led by CZ and Ella.
It is worth mentioning that Jason, the founder of Hooked Protocol, which was rumored to be a “Binance sweetheart project,” also stated during today’s AMA that he and Dovey Wan, the co-founder of Primitive Ventures and a key figure in Binance Labs, used to be in a romantic relationship. However, he denied any violations during the listing process on Binance.
The AMA is still ongoing, and DooWoo will update with the latest content…
Community Discussion on the AMA
During the AMA, not everyone was satisfied with the responses and explanations provided by He Yi and other participants. Many users expressed their opinions in the community:
Community KOL @ZKSgu tweeted that Binance’s AMA is a joke for the following reasons:
They caught 60 corrupt employees without making it public and haven’t returned the recovered $30 million to users.
Labs operates independently, but the topic discussed was listing, and then everyone said they didn’t know.
What is the application of the Sleepless AI project? This Space event sounds like AI writing the script.
After the speaker of Hooked Protocol finished the advertisement, they left without listening to the rest of the AMA.
Community KOL @Phyrex_Ni also used the term “emperor” to describe He Yi’s position at Binance and reminded him not to be blinded by his subordinates:
Just heard Sister He choked up, and I’m quite touched. After all, like an emperor, no one wants their empire to encounter problems, and everyone wants to be a good leader. But their subordinates must have their own ulterior motives. However, I don’t think people care about that. What they care about is why so many coins drop right after listing.
After Sister He finished speaking, it was basically a variety of brand promotions. It’s either a high degree of education or a strong background, or it’s the hard work of the Labs team over the years. But these are not the focus today! People didn’t expect to get any substantial verification in this public Space event. After all, it’s impossible for someone to say bad things about themselves. But at least show your position, right? Talk about the reasons for choosing coins, talk about the reasons you are optimistic about them, talk about the reasons for the drop. That’s what we really want to hear!
Okay, after the promotional part, it should have been a moment for the project team to save themselves, but it turned into an advertisement. This is a bit absurd. What’s the situation with your own project? Don’t you have any ideas? Reading a script and advertising in this kind of occasion, do you think it’s a good idea? Are you out of your mind?
Also, Sister He, you’re a bit naive. The Zhengde Emperor had the East Factory, the West Factory, and the Inner Factory, but he was still deceived for five years.
Community KOL @xixi_kawayi directly posted several charts showing the decline in the price of new coins listed on Binance, indicating that the best response from Binance would be to create a wealth effect in the secondary market after listing:
Actually, if you can’t speak, you don’t have to hold a Space event. The best way for Binance to counterattack now is to let newly listed coins create a wealth effect in the secondary market, driving market sentiment. Instead of playing the sympathy card in Space. This is not what a reaper should do. You hold a Space event and complain, then what about us retail investors who are losing money?
The translation of the image is not provided, so it cannot be included in the response.