CZ Denies Legal Threat Allegation, Calls Bankruptcy Rumors ‘Fake’
Binance Founder Changpeng Zhao has pushed back against fresh allegations circulating on social media, calling them completely false and misleading. The claims came after Swandesk CEO Jacob King suggested that CZ had privately threatened him with legal action over posts questioning Binance’s financial stability. The accusation quickly gained attention online, adding to the ongoing wave of speculation and rumors around the exchange.
In a public response to the ongoing rumors and King’s accusations, Changpeng Zhao denied ever contacting King. He stated that he does not even know King. Zhao addressed the alleged message as “fake” and criticized the spread of edited or AI-generated content. He also warned users not to fall for such misinformation.
CZ Rejects Legal Threat Claims from Jacob King
Over the past few weeks, social media has been abuzz with rumors and speculations of Binance’s bankruptcy. Critics and community members have been arguing that the crypto exchange failed to withstand the October 11 market crash. According to them, the platform has been facing significant financial instability since then. They even claim that the prevailing crypto market downturn, which many believe will last long, has further worsened the exchange’s financial crisis.
Amid these rumors, one specific incident caught the attention. Jacob King, a prominent voice on the X platform, recently shared a post explaining Binance’s insolvency. Soon, he posted another message, claiming that Binance Founder Changpeng Zhao threatened him to delete the post. The message also included CZ’s statement that he would go legal.
However, Changpeng Zhao firmly rejected the allegations, describing the claim as false and fake. CZ stated, “Don’t know him. Forgot when I blocked him, looks like for good reason. I never messaged ANYONE like that.”
CZ made it clear that he had never contacted King and does not know him personally. CZ also added that the mentioned message is fabricated, pointing out that such misleading content could be easily created using artificial intelligence (AI). CZ’s words read,
“The “fake legal letter” yesterday got some circulation too. I thought it was so obviously fake that I didn’t think it needed clarification, but saw some “new media” even write about it, while reposting the image… If people can’t tell an obviously photoshopped or AI generate fake message/letter in this day and age, they are likely going to end up poor. (Sorry to be so blunt). Ignore FUD. Live long and prosper!”
He also expressed frustration over the time spent addressing such claims, noting that he would rather focus on more meaningful work. CZ urged the community to be more careful and not fall for unverified screenshots or viral posts.
Binance Denies Bankruptcy and Insolvency Rumors
Besides this, some other X users have also raised their voices against Binance’s bankruptcy and the company’s lawsuit threat. For instance, an X user called Lewsiphur claimed that the crypto exchange threatened him to delete the bankruptcy post. The exchange has also allegedly sent him a cease-and-desist notice.
Well looks like it’s all unfolding and the truth is coming out
Binance is insolvent and they are solely responsible for 10/10.
The effect this will have on the market will be catastrophic.
This is far worse than the FTX collapse. https://t.co/kD0ZXt8sNn
— Lew (@Lewsiphur) February 3, 2026
However, the company rejected the insolvency as well as the cease-and-desist notice claims. Asserting that the company is financially stable, the Binance team noted, “It’s a forgery with a very active imagination. Please stay alert to fake documents and misleading information.”
