Bitcoin Under $28K As Rumors Of Interpol Search For CZ Engulf Internet

Several major cryptocurrencies experienced a significant price drop on the following Monday, April 3 unconfirmed rumours of an Interpol red notice after Changpeng Zhao began circulating. Zhao, as well as his company – Binance – were sued by the CFTC last week in what is currently the latest major regulatory action against a major player in the digital asset industry.

Bitcoin and BNB Fall as Rumors of a Red Notice for CZ Spread

This Monday, a well-known user on crypto Twitter shared an encrypted message that, when deciphered, reads “Interpol Red Notice for CZ” referring to the CEO of cryptocurrency exchange Binance. Although there has been no confirmation or denial of the statement, it soon spawned several memes and spread around the internet.

As a result, Bitcoin fell sharply, falling below $28,000 after almost a week of relative stability over the price. At the time of writing, it was down almost 3% and was just above $27,400. Similarly, Binance’s own BNB fell by more than 4% to a low not seen in almost a month—$300.69.

The news comes during a volatile period for the digital assets industry, as the past two months have seen several enforcement actions – and warnings of enforcement actions – against major players in the sector. Changpeng Zhao and Binance were sued by the CFTC last week. In addition, a now debunked rumor circulated that Binance was planning an exit from the US due to regulatory scrutiny.

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Are the authorities going after the entire crypto industry

Both in the US and internationally, authorities and regulators have seemingly become more antagonistic towards cryptocurrencies over the past few months. Two major disasters, the collapse of LUNA and the fall of FTX have done much to discredit digital assets for now, and the recent enforcement actions against companies like Kraken have only added to the pressure.

While the main criticism of US lawmakers so far has been that they are not doing enough to provide a clear framework for the digital assets industry, other countries have tightened regulations. Canada’s recent changes to the rulebook, for example, have created some speculation about whether some major companies will exit the market. Both Coinbase and Kraken have so far confirmed their commitment to Canada, despite the new rules.

In recent weeks, an international, months-long search for a crypto fugitive has also ended. Do Kwon, who is wanted by South Korea, the United States and Interpol, was arrested in Montenegro on March 23. On the other hand, several countries have eased their restrictions on digital assets, and Hong Kong in particular has stepped up efforts to become an important digital hub.

Is there really a red notice from Interpol to Binance’s CEO? Let us know in the comments below.

About the author

Tim Fries is the co-founder of The Tokenist. He has a B. Sc. in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.