Veteran Trader Calls Binance 'Global Scam' As Crypto Exchange Allegedly Sells Off Bitcoin To Stay Afloat: 'Watch It All Unravel'

Veteran trader Peter Brandt took to X, formerly known as Twitter, issuing a strong warning about Binance and its native token, Binance Coin BNB/USD, amidst growing concerns in the crypto community.

What Happened: Brandt, in his tweet, stated, “I have stated for years that CZ and @binance is a global scam and $BNB just a cheap fiat. Watch it all unravel.”

This statement was further supported by investor Mike Alfred’s response, suggesting that Binance’s CEO, Changpeng Zhao, was offloading Bitcoin BTC/USD to maintain the value of BNB, which seemed to be failing.

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Why It Matters: Brandt’s tweet comes amidst a backdrop of increasing scrutiny on Binance. The world’s largest crypto exchange has faced a series of challenges, from regulatory pressures to partnership losses.

Coinbase reported about the ongoing conversations surrounding Binance selling off Bitcoin to support the declining price of BNB. This has further fueled concerns about the exchange’s stability and the potential impact on the broader crypto market.

As per a Forbes report, a former U.S. Securities and Exchange Commission (SEC) official, John Reed Stark, recently voiced concerns over Binance’s operations, especially after the exchange reportedly suspended euro withdrawals and deposits via the Single Euro Payments Area (SEPA) system.

With Binance’s BNB losing over 30% of its value since the SEC’s lawsuit against the exchange and its CEO, the crypto community is on edge. The situation is reminiscent of the FTX collapse, raising concerns about the potential repercussions for Binance and its users.

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