New reports are coming in that the founder of Binance Changpeng Zhao aka CZ was just arrested in Shenzhen, China. CZ was arrested while visiting a video card manufacturing facility in Shenzhen. The arrest was first reported by The Block the news source that first broke the story of the Binance office being shut down in Shanghai. The Block stood by their sources in regards to reporting the raid, which looks to have panned out.
Binance Holdings Ltd., operator of one of the world’s biggest cryptocurrency exchanges, said: “we don’t have any fixed offices in Shanghai or China” amid rumors that police stormed the facilities in the nation’s largest city.
“Any reports of a police raid are false,” Leah Li, a spokeswoman for Malta-based Binance, said in an email. “We do not have an office in Shanghai.”
The speculation, being spread on Twitter, the raid coincided with Bitcoin’s drop of as much as 8.4% causing Nic Carter, co-founder of researcher Coin Metrics to surmise.
Bitcoin crumbled below $8,000 Thursday for the first time in approximately a month as its seven-day sell-off continued. The coin also slipped beyond its 200-day moving average line, an event considered to be a sell signal by some analysts.