Cobie, an influencer in the world of cryptocurrencies, published an encrypted message on Monday (3). Hours later, his followers managed to unravel it and the content caused a panic in the cryptocurrency market.
The message stated that Changpeng Zhao, CEO of Binance, was wanted by Interpol. Since the rumor came from a famous account, with more than 750 thousand followers, the rumor spread quickly.
“Interpol Red Alert for CZ [Changpeng Zhao]”
Seizing the moment, another user also posted a fake screenshot of the Interpol website with pictures of Zhao. At the same time, the billionaire insisted on denying the information, but it was too late, more than R$250 million had been liquidated while the market fell.
Rumors about Changpeng Zhao and Interpol are shaking the market
The best explanation of what happened was given by FatMan, the man who helped bring down the Earth (LUNA). In short, he points that Cobie tried to be mischievous, but his plan failed.
“You can prove that you knew something at a point in time, without actually having to reveal what that something is”Fatman noted using a coded message.
“If you put in a SHA256 hash prediction and it comes true, you can reveal the string and look like a complete genius. If not, you can either delete the tweet or ignore it altogether (no one will notice or care).”
That is, since Changpeng Zhao and his brokerage are facing charges in the US, Cobie might have believed in the possibility that Interpol would be triggered to arrest the billionaire at a later date.
However, Cobie’s followers managed to decipher the message before the prediction came true or, more likely, was forgotten by all.
In his defense, the influencer claimed to have posted more than 20 encrypted posts in the past year without any of them being revealed by a third party. That is, he blamed his circle of friends, pointing out that one of them had leaked the original message.
More rumors and Changpeng Zhao’s answers
Taking advantage of the rumours, another user posted a fake screenshot from the Interpol website showing Changpeng Zhao as a wanted person. The executive quickly denied the allegations, stating that it would be enough to visit the Interpol website to see that the information was false.
“It is real”wrote one user who shortly afterwards deleted his account and showed Zhao on Interpol’s website.
“This is an edited image. 4″replied CZ.
“Last Fud was only released by cryptocurrency news outlets and influencers, probably planted/sponsored by another exchange”pointed out Zhao in another tweet. “Very petty. It harms the industry and it harms itself. There are plenty of external forces attacking us. Our industry needs to come together right now.
The latest Fud was only spread by crypto news outlets and KOLs, probably planted/sponsored by another exchange. Very petty. It harms the industry and harms itself. There are plenty of external forces attacking us. Our industry needs to unite right now.
— CZ 🔶 Binance (@cz_binance) April 4, 2023
Binance spokesperson Patrick Hillmann confirmed that neither Zhao nor Binance have received red alerts from Interpol.
“One of two things is true: 1. It’s bullshit. 2. A law enforcement officer is illegally leaking elements of a case via encrypted posts (ala QAnon) on Github, which is a crime and probably much bigger news. My bet is number 1.”
One of two things is true:
1. It’s bullshit
2. A law enforcement agent is illegally leaking elements of a file via encrypted posts (ala QAnon) on Github, which is a crime and probably a much bigger news story.
My bet is number 1
—Patrick Hillmann (@PRHillmann) April 3, 2023
Bitcoin and other cryptocurrencies fell on rumours
With Changpeng Zhao, the founder and CEO of the world’s largest cryptocurrency exchange, rumors circulating that he is wanted by Interpol.
While Bitcoin lost $1,000 in a short period of time, Binance Coin (BNB) fell 4% in less than an hour and tested its support in the $300 region. As a result, several positions were liquidated.
However, the market returned to its old level after Zhao’s messages. Either way, the case served as a reminder not to trust rumors that don’t cite sources, but it also demonstrates the market’s fragility.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
