Binance CEO Changpeng Zhao (CZ) credited a little-known X (formerly Twitter) user on Wednesday for dispelling rumors of internal chaos at Binance, which suggested that the exchange was desperately selling its Bitcoin stash to protect the price of its native token, BNB.

The rumors pertained to a vulnerable BNB collateralized DeFi loan on Venus protocol that approached liquidation this week.

Is BNB in Trouble?

As explained by @zkHopium, the loan in question began with BNB Chain’s 2 million hack in October 2022, during which a hacker minted 2 million BNB (then worth $600 million) from thin air.

The hacker later deposited 900,000 stolen BNB into Venus, borrowing $150 million worth of USDT and USDC stablecoins. This theoretically puts those funds at risk of liquidation should BNB’s price dramatically fall, creating the potential for a massive BNB market crash.

In response, Venus whitelisted BNB Chain as the sole eligible liquidator for the loan, which has since paid off 90 million USDT on the loan.