CZ’s Self-Contradictory Binance Defense-You Won’t Believe It

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Oh, here we go again. The saga of CZ, compliance, and a plot twist so glossy you could polish a passport with it. I’m going to tell you this story like I’m watching a mid-season finale and the popcorn is somehow both overpriced and essential.

Key Highlights

  • CZ questions relying on anonymous sources and insists Binance uses third‑party AML and blockchain analytics tools to keep an eye on transactions. Very “I have receipts, darling,” even if the receipts come with a gloss of mystery and a dash of executives’ denials.
  • The controversy lands on the back of Binance’s 2023 $4.3 billion settlement and the ongoing spotlight on compliance and oversight practices. Think: a messy lunch where everyone forgot their napkins but remembered the bill.

Binance founder Changpeng Zhao (CZ) has pushed back against what he calls “self-contradictory” allegations about the exchange’s compliance practices, like a person who’s tired of arguing in a very calm, very public way at a party.

His comments follow a Fortune report claiming Binance fired senior investigators who allegedly uncovered potential sanctions violations tied to Iranian‑linked entities. A dramatic twist that makes you wonder if the office staple is HR or a thriller novel.

Calling out the narrative

Without offering a granular menu of internal details, Zhao questioned the internal logic of the claims in an X post on a Friday that must’ve felt like a coffee break that turned into a press conference. “If it were even true,” he quipped, one could argue that employees were dismissed for failing to stop the alleged activity. Yes, because nothing says corporate transparency like a hypothetical scenario with a punchline.

He also highlighted the reliance on unnamed sources, warning that narratives built around anonymous or disgruntled individuals can be shaped to fit almost any storyline. A reminder that gossip, when dressed up as investigative journalism, can walk the red carpet all night.

I don’t know any details or who, but just reading the article, it’s self contradicting 👇.

One could also make a narrative “maybe they were fired because they didn’t prevent it?” IF it were even true. It would also mean the 3rd party tools (the same used by law enforcement)…

– CZ 🔶 BNB (@cz_binance) February 13, 2026

Zhao emphasized that he no longer runs Binance but noted that during his tenure, the company routed transactions through multiple third‑party anti‑money laundering (AML) tools-the same systems widely used by law enforcement. So basically, if the cops were checking, Binance was in the same club with them, just with better coffee.

Compliance under the spotlight

The controversy lands against the backdrop of Binance’s 2023 settlement with U.S. authorities. The exchange agreed to pay $4.3 billion in fines after pleading guilty to violations involving anti‑money laundering, know‑your‑customer controls, and sanctions compliance. Zhao himself stepped down as CEO and reportedly did time in the spotlight, which is a fancy way of saying he did four months in prison. Or as the tabloids might call it: a very public appearance fee.

As part of that resolution, Binance entered a monitorship and pledged to strengthen oversight mechanisms. The monitorship, like a stern babysitter, promises to keep the grown-ups from losing the plot.

The recent report alleges internal investigators identified more than $1 billion in transactions involving entities linked to Iran between March 2024 and August 2025, routed through Tether on the Tron blockchain. It further claims several compliance team members were dismissed after surfacing their findings. Dramatic, right? The kind of plotline where everyone swears they’re innocent but the spreadsheet keeps doing suspicious things.

Binance has not publicly disclosed the reasons behind those departures, which-surprise-only fans the flame of rumor and intrigue. It’s like a reality show where the confessional booth is a filing cabinet.

Third-party tools and transaction monitoring

CZ’s defense centers on process. He stated that Binance historically relied on multiple independent AML and blockchain analytics providers to screen transactions. It’s the corporate version of “we have a lot of eyes on a lot of screens,” plus a chorus of lawyers whispering about due diligence in the back room.

His argument implies that if the alleged transactions went undetected or were not flagged in real time, the issue wouldn’t rest solely with Binance’s internal teams but with the broader compliance ecosystem that includes external monitoring systems. In other words: blame the entire security theater, not just the lead actor.

Hedging allegations

Zhao’s comments came after he rejected a resurfaced claim that Binance secretly profited by hedging customer positions on rival platform BitMEX ahead of the March 2020 COVID‑19 market crash. The allegations, which he called “fake news,” claimed that Binance traded on BitMEX and that the rumors were part of a larger trend of “FUD” (fear, uncertainty, and doubt) directed at the exchange. It’s the sort of gossip that would survive a long-haul flight because it’s full of turbulence and pretend techno-speak.

Broader context

Since stepping down, Zhao has largely stayed out of day‑to‑day operations, but his public defense signals sensitivity to claims that the exchange has backtracked on compliance commitments. By calling the allegations “self‑contradictory,” he’s not just arguing about facts; he’s arguing about framing. It’s a battle of storytelling with spreadsheets for weapons and a popcorn machine for moral clarity.

In the end, the message remains: the plot may be messy, but the camera loves a good contradiction. And here we are, watching someone insist the twist isn’t a twist at all.

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2026-02-13 22:38