Binance will sue TheBlock because of an attempt to tarnish the reputation of the exchange

Binance CEO Changpeng Zhao said on Twitter that the exchange will sue TheBlock for distributingfake news about a “police raid” on the exchange office in Shanghai.

Thus, in a recently published articleit was alleged that the police searched the Binance office in China, which, according to the CEO of the exchange, did not happen. Now the director of TheBlock, he plans to "look into the use of obscene language" in the story that reported the raid. Although the problem goes much deeper, since in addition to damaging the reputation of the exchange, this news allegedly had a direct impact on the crypto space as a whole.

Binance CEO added that fake news could also affect the price of BTC, and asked the news media to apologize.

They got a few more eyeballs this time, yes.  But it makes TheBlock rated as a fake news site. If that’s how they want their brand to be known, it makes sense. No apologie so far about the fake news either. Irresponsible journalism.

— CZ Binance (@cz_binance) November 22, 2019

The issue of fake news

There is a problem with fake news on the Internet.a long time ago. Numerous media outlets use them repeatedly to attract clicks. However, using this method can also cause reputational damage, and this time the damage is quite serious. Not only Binance, but also the credibility of the entire digital asset space may be at risk due to the fact that fake information is being spread.

Over the past few days, Bitcoin has been experiencinga sharp decline, although this was likely contributed not only to TheBlock news, but to China's crackdown on cryptocurrency trading in Shanghai. Right now, the price of Bitcoin is at $7,000, which is about $1,000 lower than it was earlier this week.

The rest of the cryptocurrency market is alsofollowed a decline that led to significant price declines for almost all coins. However, fake news probably had the biggest impact on the price of Binance's token, BNB. The drop was 8.46% over the last 24 hours, showing the worst result among the top coins in the space.