Binance CEO Deploys In-House Investigation Team To Look Into Allegations On Terra's Collapse

Binance CEO Changpeng Zhao, commonly known as CZ in the cryptocurrency world, has reportedly ordered an in-house investigation team to get to the bottom of the serious allegations Twitter user FatManTerra has raised against Terra co-founder Do Kwon and others concerning LUNA and UST's historic collapse.

"CZ has seen @FatManTerra’s tweets and actually instructed his team to investigate the allegations brought forward by the account," Fortune magazine's Tyler Locke tweeted, confirming that the world's largest crypto exchange is now looking into the allegations made by FatManTerra.

CZ had earlier stopped short of confirming FatManTerra's allegations of foul play involving major crypto figures. "I said, ‘…If we can draw any conclusions, we should share that with law enforcement.’ To date, we cannot confirm or deny any of the allegations," CZ said in response to the Twitter user's allegations accusing Kwon of being behind Basis Cash and complicit in defrauding the community.

"For the record, I have never spoken to Do Kwon directly. Not in 2018 when Binance invested in TFL, and not recently," the Binance CEO clarified, ensuring that he distanced himself from the controversial CEO. CZ also said that Kwon tried to talk to him directly but clarified that he "didn’t want to start a separate channel where I have to personally manage him."

FatManTerra has become a figure for exposing information about what happened during Terra's collapse and why it happened. The Twitter user claimed he received insider information from "whistle-blowers," which implicated a lot of cryptocurrency VIPs and institutions.

"Terra VIPs like @stablekwonand@stablechenvhave created the perfect staking island for themselves where they have been earning jaw-dropping farming rewards unencumbered via insider trading, tokenomics adjustments, and barriers to entry. It’s been 3 whole weeks," FatmanTerra previously said.

His claims on Twitter against Terra are so grave that Fortune referred to them during its interview with the Binance CEO. "I did ask our team to look into each one of those allegations by FatMan. I told them to look, based on the data that we have, and if we can draw any conclusions, we should share that with law enforcement," CZ shared.

The Binance founder also said the team "should help the community track bad behavior down and stop it. So, we do that type of analysis."

LUNA 2.0 was trading down 10.82% at $6.35 with a 24-hour volume of $818,870,953 as of 2:39 a.m. ET on Thursday, based on the data from CoinMarketCap.