- Binance CEO Changpeng Zhao has revealed that the exchange’s employees are prohibited from trading futures.
- The crypto exchange already enforces a 90-day hold period for crypto positions by its employees.
- Binance’s higher executives are reportedly required to disclose trading activity on a quarterly basis.
Changpeng Zhao, CEO of the world’s largest crypto exchange, recently stated that the employees of his Binance exchange, including him, are prohibited from engaging in crypto futures trading. Zhao’s latest comments came in response to an X (formerly Twitter) user, who indicated that the crypto billionaire was actively trading in light of the recent liquidations.
The past 24 hours saw one of the worst sell-offs in the crypto market since the beginning of 2023. Data from on-chain analytics firm Coinglass shows that crypto traders suffered losses exceeding $1 billion after their positions got liquidated. Bitcoin (BTC) tanked more than 7% to reach a two-month low of nearly $25,000, leading to the liquidation of $472 million worth of long positions.
A crypto influencer by the name of BEBE took to X earlier today, claiming that Changpeng Zhao’s BTC positions were also liquidated in the recent sell-offs. The influencer added that Zhao had been opening new positions since then. In response, the Binance CEO stated that he was prohibited from trading futures, given his position in the exchange. He added that crypto perpetual contracts were off-limits for the exchange’s employees as well.
Earlier this year, Binance co-founder He Yi revealed that no employee of the crypto exchange was allowed to make personal short-term crypto transactions, regardless of their position in the company. Yi added that employees were required to hold their crypto positions for a minimum of 90 days before trading.
Patrick Hillmann, the former Chief Strategy Officer of Binance, previously stated that the firm’s strict and zero tolerance policy on employees’ crypto trading had been in place since at least 2021 when he joined the firm. The exchange reportedly has an internal security team that regularly monitors multiple crypto trading platforms to detect employee trading activity.
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