Binance Co-Founder, Yi He, Responds to Binance Labs’ Exposé: Strict Anti-Corruption Mechanism within Binance
A recent anonymous disclosure in the cryptocurrency community has sparked widespread discussion, accusing Binance Labs of internal corruption and embezzlement. Several key individuals, including Dana, Dovey, Nicola, Chris, and Claudia, were named in the disclosure, which alleged that they influenced investment decisions and token listing processes through illicit means to gain significant profits.
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 mechanisms within Binance. She welcomed reports 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 disclosure?
The Relationship Between Binance Labs and Binance: Independent Operations and Separate Decision-Making
He Yi first clarifies the current status 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 since the first day of Labs’ establishment, the two teams have operated independently, making their own decisions without involvement in improper embezzlement.
Regarding the relationship between Labs’ investment projects and token listings on Binance, He Yi states that Binance’s token listing process has multiple firewalls, and it is not up to Labs to decide whether their investment projects can be listed on Binance. However, she admits that if a project is willing to provide airdropped tokens to Binance users, it can be a reference factor in the listing evaluation.
Addressing the external questioning of whether Labs employees are involved in misconduct such as bribery or insider trading, He Yi emphasizes that Binance has an open reporting mechanism. If anyone discovers internal employees engaging in violations, they can directly report to CZ, Ella, or Binance’s internal audit department, and the company will strictly investigate and even send violators to jail.
(“Binance Labs Transforms into Yzi Labs, CZ Assumes Intern Position”)
The “Best Friends of He Yi” All Market Rumors
Regarding the market rumors of privileged access for He Yi’s “best friends,” she responds with humor. She points out that almost every day, people claiming to be her “friends, relatives, or fiancé” use her name for fraud, and some even claim to be “CZ’s godson.” He Yi acknowledges that she has debunked these rumors countless times but has been unable to stop their spread.
Interestingly, regarding the persistence of the “best friends” topic, He Yi sarcastically states that Ella Zhang, who is responsible for Labs, is her “real best friend” and welcomes everyone to contact Ella to become Labs’ “new best friend.”
Furthermore, He Yi reiterates that as a co-founder of Binance, she always upholds the spirit of “user first” and is willing to listen to opinions from retail investors, key opinion leaders, and investors. Therefore, it is not surprising if someone claims “He Yi listens to me” in the market because she receives numerous suggestions and records of conversations like that every year.
Entrepreneurs Should Focus on Giving Value to Tokens
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 now stagnate in their application development and experience low token prices because they cannot touch the “security token” line.
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 main 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 the potential return of Trump to politics in 2025, which raises new expectations for US regulation.
Additionally, she admits that the current “winners” in the cryptocurrency market are meme coins, bubbles, and empty concepts because the market is still in an uncertain phase and lacks genuine value support. However, she believes that the industry will eventually see the dawn, and the key lies in whether entrepreneurs can truly give tokens real value instead of focusing solely on speculation and concepts.
He Yi Reiterates: Welcoming Value Creators to Contact Binance
He Yi further discusses the core value of the blockchain industry, stating that for more than a decade, the industry has been criticized for “not creating real value.” Many projects are merely superficial innovations that do not truly produce “fruits of labor.” She gives examples of “on-chain airdrops” and “X to Earn” models, which are merely capital games and lack substantial economic value, ultimately leading to their demise.
She believes that the current token issuance model unique to the crypto industry allows many entrepreneurs to quickly become multi-millionaire or even billionaire asset owners through Token Generation Events (TGE). However, this also leads to many people losing sight of their original intentions and focusing only on short-term wealth instead of genuine value creation.
She emphasizes that success often goes against human nature, and assets will ultimately flow to those “who are not solely driven by profit 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 heading for $1000 today, nor would there be the present-day Binance. She encourages truly idealistic and capable value creators to contact Binance and work together to promote industry development.
Facing Rumors: Believe in Light, Time Will Provide Answers
Regarding external criticism and attacks, He Yi admits that she has tried to clarify misunderstandings one by one in the past but found that it is impossible to stop rumors. Instead, she has learned to turn these challenges into nourishment for growth. She recalls the false news on Reddit in 2018 about her discriminating against female entrepreneurs and the rumor of “sending underwear” in 2019, which, even when proven false, was still quoted by some media.
She believes that the cost of spreading rumors is extremely low, but the misunderstandings in the market cannot hinder her progress. She emphasizes that if there is any substantial evidence of internal corruption at Binance, Binance is willing to accept an investigation and ensure that wrongdoers receive appropriate punishment.
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 the Statements from Both Sides
We asked the AI to comment on whether He Yi provided sufficient explanations for the allegations in the disclosure. The AI’s response is as follows:
Although He Yi’s response emphasizes the independence of Binance Labs and the internal reporting mechanism, it fails to effectively refute the key allegations in the disclosure, especially regarding whether individuals like Dana, Dovey, and Nicola truly had excessive power and engaged in internal trading (which He Yi did not address), specific cases involving corruption (such as Hooked and Sleepless AI), and whether Binance charges unreasonable fees for Chinese projects (which He Yi avoided discussing).
Overall, He Yi’s response emphasizes “we have a reporting mechanism” but does not provide specific internal investigations or past case resolutions, which may make it difficult for the public to be convinced. Her statements are more of a “general clarification” and do not directly address the details of the allegations, which may continue to raise doubts about the transparency of Binance Labs in the market.
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