Shutdown of Shanghai-Based Binance Offices Include Former Location of Babi Finance
Binance is one of the biggest exchanges in the world, so it didn’t take long for news to travel quickly over the shutdown of offices in Shanghai. Now, according to new reports, one of the offices shut down previously belonged Babi Finance, which is one of the investments of Binance. While these details were meant to make the situation a little clearer, it seems that the situation has gotten even more confusing.
The reports from the Chinese media referenced the original stories reported by The Block, as well as the accusation from Binance that it was “fake news.” However, the media seems to have clarified that the offices belonged to Babi Finance and that it was for the customer rep center. Babi Finance is one of the many investments of Binance, which is likely to be the reason that the reports were confusing in the first place.
Translating the story for English-speaking readers, Dovey Wan posted to Twitter about the story.
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
Wan states that this circumstance might be the first time that the Chinese state media has even quoted Crypto Twitter at all, drawing attention to The Block’s report on this circumstance. As can be seen through the many comments on the post, there are still a lot of questions.
CEO Matthew Graham of Sino Capital Global remarked that Babi Finance has been closed for quite a while, pointing out that November 2018 was the last time that the official WeChat account made any posts. If that is true, then it is still entirely possible that the office was operating as a Binance-focused location for the majority of this year.
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 (@mg0314a) November 25, 2019
Other concerns from followers had to do with the interpretation that Wan posted. Larry Cermak, the director of research for The Block, stated that the correct English translation was not used by Wan, misleading anyone who listens to it. Cermak also claims that the true story is that Binance used Babi Finance to hire people.
However, the use of the office by Binance for 2019 still isn’t clear.
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
Still, with all of these issues arising, the CEO of Binance – Changpeng Zhao – responded to the tweet by Wan, which could make the whole situation even more suspicious .
👍👍👍 thanks @DoveyWan
— CZ Binance (@cz_binance) November 25, 2019
As there has been no change in the case, Binance seems to be set on suing The Block, alleging that there is “fake news” on their company.