Binance CEO denies the loss of 90% of customers after implementing KYC

Changpeng Zhao said that his colleague’s words were distorted in order to attract traffic to the news site

01.08.2022 - 13:40

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What’s new? Changpeng Zhao, the head of the cryptocurrency exchange Binance, has denied claims by his staff that the company lost 90% of customers and billions of dollars after implementing the KYC procedure. Tigran Gambaryan, the head of the compliance team, said this earlier in an interview with CoinDesk, commenting on a Reuters investigation into the exchange’s involvement in money laundering by criminals. On Twitter, Zhao said his colleague’s words were distorted. “This type of headlines sell more clicks... Sad, but true,” he concluded.

It's a complete mis-quote. Look at the numbers...😂😂😂But the fact is, this type of headlines sell more clicks... Sad, but true. https://t.co/Zuega2hMjU— CZ 🔶 Binance (@cz_binance) August 1, 2022

Details of the investigation. In early June, the Reuters news agency investigated that criminals had laundered more than $2,35 billion through Binance since 2017. It noted that hackers from the North Korean group Lazarus and individuals involved in the Russian darknet marketplace Hydra were among them.

In November 2021, Changpeng Zhao reported that the exchange lost about 3% of its customers after implementing KYC. And in May, Binance strengthened KYC procedures to comply with sanctions restrictions.

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