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Veteran trader Peter Brandt accuses Binance CEO Changpeng Zhao of fraud

Tue 23 Nov 2021 ▪ 10h43 ▪ 3 min read — by Susan McCormack

On 23rd November 2021, veteran trader and Factor LLC CEO Peter Brandt addressed the crypto community on Twitter and called out Binance CEO Changpeng Zhao (CZ) .

The story behind the tweets

Factor LLC CEO Peter Brandt accused the head of Binance Changpeng Zhao of fraud. Brandt believes that the world’s largest cryptocurrency is “abusing” its customers.

The tweet received a mixed reaction, which made Brandt clarify his statements. Factor LLC CEO explained that his issue with crypto exchanges in general, including Binance, is that they deal “against customer orders”.

These platforms allow using extreme leverages on the futures market, provoking investors to take unreasonably high risks to get bigger profit.

If the trader’s bet gets through in the highly volatile market, exchanges incur losses, which no platform wants. Brandt claims that trading platforms are being intentionally “frozen” during hikes, preventing retail players from closing profitable deals.

“My gripe vs. crypto exchanges goes far deeper than bad fills – it deals with trading against customer orders way outside daily range and not reporting the price discovery. We’d have been jailed”, Peter Brandt tweeted.

A similar point of view is shared by some retail players, who believe that server overloading and freezes, which are frequent during high market volatility, are nothing more than exchange’s attempts to make profits for one group of bidders at the expense of others.

In mid-May, when cryptocurrencies suddenly began to plunge one after another, Binance “froze”, throwing its users into the midst of the crypto apocalypse. The exchange froze for more than an hour, costing thousands of traders their fortunes. In response, more than 700 users filed a lawsuit against Binance.

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Susan McCormack avatar
Susan McCormack

How many crypto nerds does it take to fork an altcoin? I may be a failed comedian, but crypto is no joke! I want to share my knowledge and help others to see the bright future ahead. #buybitcoin

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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