Recently, an anonymous whistleblower article has sparked extensive discussion within the cryptocurrency community, alleging internal corruption and embezzlement within Binance Labs. Several key individuals, including Dana, Dovey, Nicola, Chris, and Claudia, are named, accused of using “white glove” tactics to influence investment decisions and listing processes, and even profiting from them.
In response to these allegations, Binance co-founder He Yi published a lengthy article attempting to clarify the independence of Binance Labs and emphasizing the strict anti-corruption measures in place within the company. She welcomed reports of misconduct and promised severe punishment for corrupt behavior. However, is her response sufficient to dispel doubts and provide convincing explanations for the core issues raised in the allegations?
Relationship between Binance Labs and Binance: Independent Operations and Separation of Decision Making
He Yi first clarifies the current situation of Binance Labs, stating that the department has been renamed Yzi Labs and is independently managed by Ella Zhang, who reports directly to Binance founder CZ (Changpeng Zhao). She emphasizes that from the first day of Labs’ establishment, these have been two independent teams making their own decisions and not involved in any improper transfers of benefits.
Furthermore, regarding the relationship between Labs’ investment projects and listings on Binance, He Yi states that Binance’s listing process has multiple firewall mechanisms, and it is not Labs that decides whether an investment project can be listed on Binance. However, she admits that if a project is willing to provide airdropped tokens to Binance users, it can be one of the factors considered in the listing evaluation.
Regarding the external doubts about Labs employees engaging in improper behavior such as bribery and insider trading, He Yi emphasizes that Binance has a public reporting mechanism. If anyone discovers internal employees involved in violations, they can directly report to CZ, Ella, or Binance’s internal audit department, and the company will rigorously investigate and even send violators to prison.
(“Binance Labs transformed into Yzi Labs, CZ serves as intern”)
“Friends of He Yi” are all market rumors
Regarding the circulating rumors about He Yi’s “friends” having privileges, He Yi responds in a humorous manner. She points out that almost every day, people claiming to be her “friends, relatives, or fiancés” use her name for fraudulent activities, and some even claim to be “CZ’s godson.” He Yi admits that she has debunked rumors countless times but has been unable to stop the spread of such claims.
Interestingly, in response to the persistent focus on the “friends” topic, He Yi sarcastically states that Ella Zhang, who is currently in charge of Labs, is her “real friend” and welcomes everyone to contact Ella to become the “new friend” of Labs.
Furthermore, He Yi reiterates that as a co-founder of Binance, she has always upheld the spirit of “user-first” and is willing to listen to opinions from retail investors, KOLs, and investors. Therefore, it is not surprising if someone claims, “He Yi listens to me,” as she receives a large number of such suggestions and conversation records every year.
Entrepreneurs should focus on giving tokens value
Discussing the current market situation, He Yi shares her perspective as a holder of BNB. She believes that the development of the cryptocurrency market shows cyclical changes, from the infrastructure boom in 2017 to the DeFi, metaverse, and GameFi waves in 2021. However, many projects are now stagnating in their development and experiencing low token prices because they cannot touch the “security token” threshold.
She points out that the market’s current upswing in 2024 is mainly influenced by traditional financial institutions entering the market and ETF promotion. However, the biggest problem in the cryptocurrency market is the “lack of quality assets.” She believes that changes in US regulatory policies will determine the market’s future development, especially with Donald Trump’s return to politics in 2025, which creates new expectations for US regulation.
In addition, she admits that the current “winners” in the cryptocurrency market are meme coins, bubbles, and empty concepts, as the market is still in an uncertain stage lacking genuine value support. But she believes that the industry will eventually usher in a dawn, and the key lies in whether entrepreneurs can truly give tokens actual value rather than just speculation and concepts.
He Yi reiterates: Welcome those capable of creating value to contact Binance
He Yi further discusses the core value of the blockchain industry, stating that for over a decade, the blockchain industry has been criticized for “not creating real value.” Many projects are merely superficial innovations and do not truly produce “fruits of labor.” She gives examples such as “on-chain airdrops” or “X to Earn” models, which are merely capital games lacking genuine economic value and ultimately face zero-sum outcomes.
She believes that the current token issuance model unique to the cryptocurrency market allows many entrepreneurs to quickly become multimillion or even billionaires through TGE (Token Generation Events) in the early stages of their projects. However, this also leads to many people losing sight of their original intentions and focusing only on short-term wealth rather than creating real value.
She emphasizes that success often goes against human nature, and assets will ultimately flow to those who “are not just in it for the money but want to change the world.” If the Binance team had chosen to cash out when BNB was only $10, there would not be the BNB currently aiming for $1000, nor would there be the present Binance. She encourages truly idealistic and capable entrepreneurs to contact Binance and work together to promote industry development.
Facing rumors: Believe in light, time will provide answers
Regarding external criticisms and attacks, He Yi admits that she has tried to clarify misunderstandings one by one in the past but found that she cannot stop rumors. Instead, she has learned to turn these challenges into nutrients for growth. She recalls false news on Reddit in 2018 about her discriminating against female entrepreneurs and the rumor of “sending underwear” in 2019, which, despite being proven false, was still quoted by some media outlets.
She believes that spreading rumors has a very low cost, but the misunderstandings in the market cannot hinder her progress. She emphasizes that if there is any substantial evidence of internal corruption at Binance, they are willing to accept an investigation and ensure that wrongdoers are duly punished.
Finally, she concludes with the phrase “Believe in light, time will provide answers,” expressing her confidence in the future of the cryptocurrency industry and hoping that the industry can truly create value rather than relying solely on speculation and rumors.
AI Comment on Both Sides’ Statements:
When it comes to the text, AI comments on whether He Yi provided sufficient explanations for the allegations in the whistleblower article. The results indicate that He Yi’s response, although emphasizing the independence of Binance Labs and the internal reporting mechanism, did not effectively refute the key accusations made, especially:
– Whether individuals like Dana, Dovey, and Nicola truly had excessive power and engaged in insider trading (He Yi did not respond).
– Whether specific cases like Hooked and Sleepless AI involved corruption (He Yi neither denied nor clarified if there was an investigation).
– Whether Binance charged unreasonable fees to Chinese projects (He Yi avoided the question).
Overall, He Yi’s response emphasizes “we have a reporting mechanism” but does not provide specific internal investigations or past case handling, which may make it difficult to convince the public. Her statements are more of a “general clarification” without directly addressing the details of the accusations, which may continue to raise questions about the transparency of Binance Labs in the market.
Risk Warning:
Cryptocurrency investment carries a high level of risk, and prices may fluctuate dramatically, resulting in potential loss of the entire principal. Please carefully evaluate the risks.