Chinese state media has picked up the story of Binance’s Shanghai offices reportedly being shut down by police. According to reports, the office formerly belonged to Babi Finance, one of Binance’s many investments.
New details have emerged on the supposed ‘police raid’ on Binance’s Shanghai offices.
The story started with The Block reporting that Binance’s Shanghai offices were raided and shut down by Chinese police. Now, Chinese state media has brought new details to the table which are intended to clarify the situation — but confusion remains.
Chinese Local TV Weighs in on Binance Raid
Chinese state media’s report on the story quoted both The Block’s original story and Binance’s accusations of it being ‘fake news.’
It was apparently clarified that Binance’s Shanghai offices actually belonged to Babi Finance. The office was the firm’s customer rep center. Babi Finance is reportedly an investment of Binance, which likely was the root cause of the initial confusion.
Dovey Wan (@DoveyWan) spoke on the story recently and translated the story for English readers. You can view the full Chinese TV report in her tweet.
Shanghai local TV station covered “Binanace Shanghai office shut down” tonight
It quoted both original news and Binance’s response of the fake news
It clarified what “Binance” Shanghai office is – an outsourced customer rep team, under Babi Finance (a Binance investment) pic.twitter.com/InYOqCaxwi
— Dovey 以德服人 Wan
(@DoveyWan) November 25, 2019
Funny enough, Wan mentions how this may be the first time Chinese state media has quoted Crypto Twitter directly. It showed The Block’s reporting on its broadcast while bringing in Binance’s criticisms.
Critics Continue to Voice Concerns
However, as many have made clear in Wan’s replies, questions persist.
As Matthew Graham (@mg0314a), CEO of Sino Capital Global, writes, Babi Finance has been shut down for some time now. The last post from its official WeChat account was in November 2018, he claims. So, this may have been operating as a Binance-related office for much of 2019.
As I understand it though Babi Finance (website used to be https://t.co/jCYuVwwBUM) has been shut down for some time though. Last post from Babi official WeChat account was Nov. 2018 so likely around then. There’s a lot to unpack here.
— Matthew Graham (@mattysino) November 25, 2019
Others had an issue with Dovey Wan’s interpretation, entirely.
Larry Cermak, Director of Research at The Block, claimed that Wan is obscuring the proper English translation and is misleading her readers. The report, claims Cermak, says that Binance hired people through Babi Finance.
It’s still unclear whether the office was in use by Binance directly in 2019 or whether it was an unregistered vestige of Babi Finance.
Correct me if I’m wrong but the news said they visited the Binance Shanghai office in person and saw it’s closed. And that in the past few years, Binance hired people through Babi Finance. Not that the office itself belongs to Babi. How did you arrive at your interpretation?
— Larry Cermak (@lawmaster) November 25, 2019
All being said, Binance CEO Chengpeng Zhao (CZ) responded positively to Wan’s tweet. For some, this may raise further suspicions that there is more to the story than what meets the eye.
Binance still plans to sue The Block for its supposedly ‘fake’ reporting. Thus far, we have no details on when this legal case will be put forward.
Images are courtesy of Shutterstock, Twitter.
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