Crypto Twitter is indignant once more. This time, the goal is acquainted: Binance, the world’s largest crypto change, and its co-founder Changpeng Zhao (CZ).
Over the previous few days, main allegations have taken over Twitter (or X) timelines, with some customers calling him “a scammer” and demanding he be “despatched again to jail.” So what is definitely behind the most recent accusations, and the way a lot of it’s supported by verifiable proof?
The October Market Crash: What Occurred?
One of the crucial severe allegations dealing with Binance dates again to October, throughout what later grew to become often known as “Crypto Black Friday.”
On October 10, US President Donald Trump introduced 100% tariffs and export controls concentrating on China. The announcement instantly rattled international markets, sending danger property sharply decrease.
Crypto was no exception. BeInCrypto reported that Bitcoin fell round 10%. Main altcoins adopted swimsuit: Ethereum (ETH), XRP (XRP), and BNB (BNB) every declined by greater than 15%.
Inside 24 hours, greater than $19 billion in leveraged positions had been liquidated, marking the biggest liquidation occasion tracked by crypto knowledge analytics agency CoinGlass.
Initially, the crash was extensively seen as a market-wide panic triggered by macroeconomic information. Nonetheless, market individuals quickly started to query whether or not the collapse was purely natural.
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On social media, merchants speculated that the dimensions and pace of the liquidations urged one thing extra coordinated than an ordinary sell-off. Consideration quickly turned to Binance.
Why Binance Grew to become the Focus
Throughout the sharpest section of the crash, Binance customers reported frozen accounts and failed stop-loss orders, and difficulties accessing the platform. Some merchants additionally pointed to transient flash crashes that pushed property, resembling Enjin (ENJ) and Cosmos (ATOM), to close zero.
BeInCrypto reported that three Binance-listed property, together with USDe, wBETH, and BNSOL, quickly misplaced their pegs amid the turmoil.
Binance publicly acknowledged disruptions throughout the occasion. The change cited “heavy market exercise” as the reason for system delays and show points, whereas reiterating that consumer funds remained SAFU.
Nonetheless, the reason didn’t calm all critics. Some customers accused Binance of benefiting from the buying and selling freeze, alleging that the disruption allowed the change to revenue throughout peak volatility.
Did Binance’s Compensation Technique Work?
On October 12, Binance launched an announcement following an inside evaluation of the incident. In keeping with the change, core spot and futures matching engines, in addition to API buying and selling, remained operational.
“In keeping with knowledge, the pressured liquidation quantity processed by Binance platform accounted for a comparatively low proportion to the full buying and selling quantity, indicating that this volatility was primarily pushed by total market circumstances,” the change famous.
Nonetheless, Binance acknowledged that sure platform modules skilled transient technical glitches after 21:18 UTC on October 10, and that some property suffered de-pegging resulting from excessive market fluctuations.
Binance acknowledged that it accomplished compensation for affected customers inside 24 hours, distributing roughly $283 million throughout two batches.
Two days later, on October 14, Binance launched a $400 million help initiative. The package deal included $300 million in reimbursement vouchers for eligible impacted merchants, with the remaining funds allotted to low-interest institutional loans.
Whereas Binance was on the middle of neighborhood backlash, it was not the one platform affected amid the crash. Different main exchanges, together with Coinbase and Robinhood, additionally reported service disruptions.
Coinbase’s Bitcoin buying and selling exercise additionally drew scrutiny, although no conclusive proof has linked it to market manipulation or to triggering the crash.
It’s price noting that scrutiny continued within the weeks following the crash; some earlier claims had been later reassessed. One dealer who had publicly accused Binance later retracted these claims.
After reviewing technical knowledge supplied by the change, the dealer stated Binance’s logs confirmed no system errors. He subsequently deleted the unique publish, stating he didn’t wish to contribute to the unfold of unverified data.
“My primary argument was that ‘API orders failed, and reduce-only orders returned a 503 error.’ However Binance’s technical group supplied full logs throughout our assembly, which confirmed that the reduce-only orders by no means encountered a 503 error. An funding agency linked to my good friend additionally joined the investigation. The primary account administration group and their accountable employees reviewed the worldwide logs and confirmed that there was no 503 error for reduce-only orders,” the publish learn.
Why the Binance Backlash Resurfaced in January 2026
For some time, the mud appeared to settle. Then 2026 arrived, and the allegations got here roaring again. This had rather a lot to do with how the crypto markets carried out within the months following October.
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After the huge deleveraging occasion, the market stayed underneath strain. Bitcoin and Ethereum gave up all of their 2025 features, closing the 12 months within the pink. Market consultants more and more pointed to the October crash as a key issue behind the sector’s muted efficiency.
“There was a large deleveraging…some exchanges and market makers…so the {industry} is type of limping alongside, however the fundamentals have improved rather a lot,” BitMine Chairman Tom Lee acknowledged.
The dialogue intensified additional after Ark Make investments CEO Cathie Wooden’s latest feedback. In a latest interview with Fox Enterprise, she stated:
“What we’ve got undergone within the final 2-3 months are the reverberations after 10/10…October 10….is the flash crash related to a software program glitch on Binance that deleveraged the system, and to the tune of $28 billion, there have been lots of people damage.”
Quickly, different {industry} figures started to weigh in. Star Xu, founding father of OKX, commented that individuals have “underestimated the affect of 10/10,” arguing that the crash prompted “actual and lasting harm” to the crypto {industry}.
An industry-leading firm, he stated, ought to prioritize core infrastructure, belief with customers and regulators, and the long-term well being of the ecosystem. With out mentioning particular corporations, Xu contrasted that very best with what he described as a rising concentrate on short-term features.
“As a substitute, some selected to pursue short-term features—repeatedly launching Ponzi-like schemes, amplifying a handful of “get-rich-quick” narratives, and immediately or not directly manipulating the costs of low-quality tokens, drawing thousands and thousands of customers into property carefully tied to them. This has develop into their shortcut for attracting visitors and consumer consideration. Legit criticism is then drowned out—not by means of details or accountability, however through aggressive narrative management and coordinated influencer campaigns,” the chief added.
Binance Faces Dealer Accusations
Market watchers started circulating what they described as alleged proof of Binance’s wrongdoing.
In a publish on X (previously Twitter), Star Platinum pointed to Binance’s October 6 announcement that it could replace the pricing supply for BNSOL and wBETH, with the replace scheduled for October 14.
StarPlatinum additional claims that greater than $10 billion moved within the 24 to 48 hours earlier than the occasion, together with giant USDT and USDC inflows into change scorching wallets.
The analyst additionally highlighted USDe flows tied to wallets they label as Binance-linked. The analyst contrasted Binance’s scenario with Coinbase’s, stating:
“Coinbase didn’t record the weak hyperlinks (USDe / wBETH / BNSOL) however did two issues: Moved 1,066 BTC from chilly to scorching minutes earlier than the cascade ($130M at pre crash costs). Throughout the drop, giant move that couldn’t fill on Coinbase seems to have been routed out through market makers (Prime-style diversion). Coinbase’s cbETH peg held; Binance’s wBETH collapsed.”
StarPlatinum additionally famous that main market-making corporations resembling Wintermute and Leap appeared to have restricted exercise in USDe, wBETH, and BNSOL throughout the interval of maximum volatility.
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“Pull bids in these books whereas Binance marks collateral off these books, and the liquidation engine eats itself,” the analyst remarked.
In addition they allege a brand new account constructed as much as round $1.1 billion in notional BTC and ETH shorts within the last two hours earlier than the crash, with one ETH place rising roughly a minute earlier than a key publish, producing an estimated $160 million to $200 million in revenue.
One other consumer accused Binance of manipulating liquidation timestamps. In keeping with the consumer, Binance introduced after the crash that it could compensate eligible liquidations occurring after 05:18 (UTC+8).
Nonetheless, the dealer says his liquidation was recorded on the platform at 05:17:06, inserting it simply outdoors the eligibility window.
The dealer argues that this timestamp conflicts with an automatic system e-mail exhibiting a liquidation set off time of 05:20:08 (UTC+8), a distinction of roughly three minutes.
“This auto-generated, tamper-proof e-mail is essentially the most ironclad proof. That is the core of crypto: Code Is Regulation,” the publish acknowledged.
In the meantime, Binance’s personal assertion cited a special timeframe:
“All Futures, Margin, and Mortgage customers who held USDE, BNSOL, and WBETH as collateral and had been impacted by the depeg between 2025-10-10 21:36 and 22:16 (UTC) will likely be compensated, along with any liquidation charges incurred,” the change talked about.
Crypto Twitter Erupts With “Scammer” Claims Towards CZ
As these claims circulated, it didn’t take lengthy for the tone on social media to escalate. Customers started sharing prolonged posts labeling CZ a “scammer” and accusing him and Binance of systematically abusing their market dominance to the detriment of rivals and retail merchants.
A number of posts gained traction, with a number of going viral as neighborhood members amplified the claims and expressed help. As engagement surged, the allegations grew to become a recurring fixture on Crypto Twitter timelines.
In an interview with BeInCrypto, Ray Youssef, CEO of NoOnes, described Binance as a US-aligned instrument for what he known as a “managed demolition” of the crypto market.
Youssef urged that Zhao has aligned himself with the US institution, which he characterised as the actual energy now influencing Binance’s course.
For Youssef, Binance’s rising ties to america are a trigger for concern. He claimed the change has develop into a managed asset that would finally be used to set off or speed up a broader market collapse.
“Binance is changing into is the subsequent FTX or what FTX ought to have been…When CZ burst the bubble on FTX, the harm was actually mainly 1% of what the state deliberate it to be. Now they’re going to make use of Binance as that they’re going to make that corpse explode proper in our face,” Youssef informed BeInCrypto.
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Criticism has additionally prolonged to Zhao’s latest feedback on the buy-and-hold technique.
“I’ve seen many various buying and selling methods through the years, only a few can beat the straightforward ‘purchase and maintain’, which is what I do. Not monetary recommendation,” CZ wrote.
The remarks drew swift backlash. Critics pointed to the efficiency of tokens listed on Binance, arguing that many have misplaced important worth and questioning whether or not a buy-and-hold method is sensible for retail customers.
“The largest rip-off change to ever exit, all mission ought to apply for a delisting from binance,” an analyst asserted.
Nonetheless, BeInCrypto reporting exhibits that the weak point was not exchange-specific. Crypto tokens listed throughout main platforms in 2025 broadly struggled to maintain optimistic worth efficiency.
The pattern held whatever the change, reflecting a market-wide downturn somewhat than points tied to any single buying and selling venue.
That’s not all. Customers additionally accused Binance of promoting Bitcoin at the moment amid the market crash.
Binance and CZ Difficulty Response Amid Backlash on Crypto Twitter
Nonetheless, because the backlash grew louder, Binance moved to mission power. The change introduced plans to transform your complete $1 billion reserve of its Safe Asset Fund for Customers (SAFU) from stablecoins into Bitcoin over the subsequent 30 days.
In an open letter to the neighborhood, Binance careworn that it “holds itself to elevated requirements” and “regularly improves based mostly on suggestions” from customers and the broader public.
The change revealed that in 2025, it continued investing in danger controls, compliance, and ecosystem improvement, citing a sequence of highlights:
- Binance stated it assisted in recovering $48 million throughout 38,648 incorrect consumer deposits.
- It added that it helped 5.4 million customers and prevented an estimated $6.69 billion in potential scam-related losses.
- It stated cooperation with regulation enforcement contributed to the confiscation of $131 million in illicit funds.
- It famous that 2025 spot listings spanned 21 blockchains, led by Ethereum, BNB Sensible Chain, and Solana.
- It reported Proof of Reserves totaling $162.8 billion throughout 45 crypto property.
A private response additionally got here. CZ weighed in publicly, dismissing the most recent allegations as a well-recognized cycle.
“Not the primary time, received’t be the final time. Been receiving FUD assaults since day 1. Will deal with it within the AMA tonight, look under the floor on why and the way,” he shared.
The renewed scrutiny of Binance displays greater than a single occasion or set of claims. It highlights how fragile belief stays in crypto after years of volatility, leverage-driven crashes, and high-profile failures.
In a market nonetheless struggling to get better, unresolved questions are inclined to resurface.