Episode 238 - Should you trust Binance?


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By Brent Philbin, Karim Baruque, and Adam "Roothlus" Levy - The Cryptocurrency news nerds, Brent Philbin, Karim Baruque, and Adam "Roothlus" Levy - The Cryptocurrency news nerds. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Welcome to the show people! Today the gang assesses a hot topic - a user claimed on reddit that Binance "took" money from him and it blew up. Even CZ commented and got blasted. Also, we take a look at an admittedly cringy article listing the "7 deadly sins of CZ". What a day. Tune in now!

Relevant Links:

  • Reddit user calls out Binance for "accidentally" taking 12061.48 and won't give it back.
  • CZ Responds to the reddit user
  • The user posts some so called proof proof
  • Some more so called proof
  • Another user piggy backs off of the hype and posts "7 Deadly Sins of Changpeng Zhao"
  • Wayback machine of CZ calling out OKcoin
  • So What happened?
  • Text of the Post
  • background on the 28th of January I happend to be trading on the futures platform. Due to a mistake by binance my orders weren’t executed and I was liquidated.
  • Well I opened a ticket demanding back my funds. After a couple months of mails every 2 or 3 days. Binance denied everything and weren’t giving back the money, so I opened another ticket. This time I didn’t ask for a refund up front. Binance straight up told me it was their mistake and that they would compensate me 3bnb. Well I didn’t take that well, so I asked for my full amount back.
  • Binance went in to a defensive mode and decided mixing up different cases would settle the issue. (Binance had messed up again and I lost 3600 USDT, so they compensated me 1018 USDT) they told me they had already compensated me and that I shouldn’t ask for more. When I called them out on the fact that the cases weren’t related, they told me they weren’t going to give me the 12061.48 USDT back anyway.
  • I pointed out that by admitting their mistake in this ticket they broke their own policy. It states that Binance has to execute a trade. After I mentioned this they went silent, I have bugged support every 2 days, but I have not received anything as of yet and it has been almost a month.
  • I wanted more people to know as Binance is the biggest in the industry, and they bury the negative very easily. I need your help in demanding an answer for Binance her mistakes.
  • He explained more a little further down
  • In response to if he got liquidated
  • I did, but it is more complicated than that. I was trading on the futures platform. My positions weren’t doing well so I made the decision to close them.
  • I have a screenshot of the positions before they were closed and after they were closed. Anyways I closed the positions market bought them. (I was shorting) well you’d think that was it. I screenshotted the fact that I had just 12k left. And it showed no open positions. After 4 hours however I get notifications from my phone that I were about to be liquidated, I opened my phone and my positions were still open. And were almost all liquidated.
  • Binance told me that I experienced the “app disconnection issue” I don’t know what this means. They however told me it is only common on the app and that is my responsibility for not trading on pc.
  • Support shows up to respond
  • https://www.reddit.com/r/CryptoCurrency/comments/ga027j/binance_accidentally_took_1206148_and_wont_give/foxrfbp/
  • CZ Actually shows up to respond.
  • https://www.reddit.com/r/CryptoCurrency/comments/ga027j/binance_accidentally_took_1206148_and_wont_give/foyfpeh/
  • The guy posts a couple of screenshots that really don't say much, tells me he posted proof.
  • Binance support ends their conversation back and forth few hours later.
  • We've already given you the verdict multiple times. You have not provided any more solid evidence that there was a mistake on Binance's side, nor that this error directly caused you to lose any money. Sorry, you can't pressure us into giving you money, be it through misleading social media threads or threatening self-harm as was done in the first ticket. We're happy to approach this legally.
  • So what's this article about CZ?
  • The article starts out with the picture of CZ in shorts and a suit jacket with a giant red circle around it. Remember he was respecting the shit out of the Bermuda culture while he was there, that's where the picture from. So I'm sure this article is good.
  • Envy
  • I dunno this is pretty loose, but they say this is a sin because OKCoin had fake trading volume, and CZ was their CTO. The article he references was published in 2013, and CS started working there in 2014. CZ left after only 9 months and cited "differences" rather than your normal bullshit nice guy thing.
  • Lust
  • They're really stretching here, but they link to an old post by CZ where he actually goes off on OK Coin. I didn't know this.
  • I dunno what happened with OK coin and Roger Ver, but that is the crux. Some of the key points from this - CZ wasn't paid when he left, his signature was forged after he left, and he was urging them to stop their shady shit by not honoring a deal with Roger and Bitcoin.com.
  • He then goes on to confirm how they are faking volume, how they are
  • using bots
  • they were playing with their reserve and might not have it
  • They encouraged employees to trade
  • had bad security.
  • This guy's angle is "CZ knew about this and went along with it" somehow.
  • Greed
  • So now they say he is misleading by calling Binance "the leading cryptocurrency exchange" and then post a screenshot of Coin market cap showing that binance is number 23. I have no idea how he got this number, as they're not below 7 on any of the ways to slice the data.
  • He finally makes his first good point - Binance has ridiculous withdrawal fees.
  • Then he posts all of the shitty ICOs that Binance helped launch and how they tanked.
  • Pride
  • Alright finally he starts making some points that I can get behind. CZ said on twitter that when you raise funds for a project you need to set aside funds to battle fud. He's 100% right. Then Justin sun said he'd donate 100 BTC to fight fud, so CZ matched it?
  • Binance is apparently a part of a PR firm's client list called Cryptoken.
  • So this guy emailed them I guess to hit his gotcha moment. Lol. Spoiler - he didn't gotcha.
  • Sloth
  • This one he puts a bunch of dots together that show CZ and Justin sun know each other, and then posits that that means they're friends. Obviously the easiest way to know someone isn't justin's friend is to find multiple points of social contact.
  • Gluttony
  • Here apparently the bad thing that CZ did was put a tweet that would donate $1 for every retweet to fight covid 19. Well they only got 10k retweets so CZ donated $2M. Wow what a dick. Then he links a video with a thumbnail of CZ with Devil horns that is deleted to nosequitur attack their charity org.
  • Wrath
  • Thesis here - no one seems to know where they are located. Uhhh you're fuckin kidding
  • Then he shouts out chico crypto in the comments.
  • Oh god I realized it's on the steem fork.
  • So what do we think of CZ boys?

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