Musk chides Binance CEO on dogecoin glitch

FILE PHOTO: Representation of cryptocurrency Dogecoin is seen in this illustration
FILE PHOTO: A representation of cryptocurrency Dogecoin is seen in this illustration taken August 6, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

November 23, 2021

(Reuters) – Tesla founder Elon Musk on Tuesday delivered a stinging rebuke to Binance Chief Executive Changpeng Zhao on Twitter after the cryptocurrency exchange limited withdrawals of meme-based digital currency dogecoin.

The cryptocurrency market has seen major fluctuations this year, often in response to Musk’s tweets. His comments on dogecoin have fueled a dizzying rally in the cyptocurrency’s value this year.

“Hey @cz_binance, what’s going on with your doge customers? Sounds shady,” Musk tweeted on Tuesday.

Binance responded saying it is rebuilding its dogecoin wallet entirely, resulting in a delay in withdrawals that may continue for another week.

Binance, one of the largest cryptocurrency exchanges by trading volumes, has come under scrutiny from regulators, according to reports.

Cryptocurrencies have drawn the ire of regulators worldwide and yet managed to trade at record highs as investors rush to profit from wild swings in prices.

Global regulators worry the rise in privately operated currencies could undermine their control of the financial and monetary systems, increase systemic risks, promote financial crime and hurt investors.

(Reporting by Manya Saini and Mehnaz Yasmin in Bengaluru; Editing by Saumyadeb Chakrabarty)