Binance faces new accusations of potential insolvency tied to the October 2025 “10/10” market crash, sparking user withdrawals and legal threats. Despite online panic and a 9% drop in its BNB token price, blockchain analytics show the exchange’s bitcoin reserves remain stable around 659,000 BTC with no abnormal outflows, contrasting sharply with user fears of another FTX-style collapse.
A wave of users publicly announced leaving Binance on social media, fueled by fears of insolvency reminiscent of FTX‘s collapse. The situation escalated after a purported cease-and-desist letter from Binance’s lawyers to an X user, @Lewsiphur, surfaced online demanding the retraction of insolvency claims linked to the “10/10” $19 billion liquidation event from October 2025.
In response, @Lewsiphur stated publicly, “I really want to expose everything I was told from credible resources but I can’t risk a legal battle.” Users began sharing screenshots of closed accounts, with one warning “If we use platforms that scam users, we can lose everything,” while critics claimed the truth coming out could be “catastrophic” and “far worse than the FTX collapse.” However, data from CryptoQuant presented a different reality, stating “FUD vs Reality: Binance shows no signs of stress.”
The firm noted that despite the social media panic, Binance’s bitcoin reserves held steady and fund flows were within normal levels, unlike the sharp outflows seen during the FTX failure. Meanwhile, BNB price fell to $691.43, and Bitcoin dropped to $70,634.70, reflecting broader market anxiety.
