The Binance Playbook: Why Crypto Twitter Hates the Biggest Exchange?
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 newest accusations, and the way a lot of it’s supported by verifiable proof?
The October Market Crash: What Happened?
One of the most severe allegations going through Binance dates back to October, throughout what later turned generally known as “Crypto Black Friday.”
On October 10, US President Donald Trump announced 100% tariffs and export controls focusing on China. The announcement instantly rattled international markets, sending danger property sharply decrease.
Crypto was no exception. BeInCrypto reported that Bitcoin fell round 10%. Major altcoins adopted swimsuit: Ethereum (ETH), XRP (XRP), and BNB (BNB) every declined by greater than 15%.
Within 24 hours, greater than $19 billion in leveraged positions have been liquidated, marking the largest liquidation occasion tracked by crypto knowledge analytics agency CoinGlass.
Initially, the crash was broadly seen as a market-wide panic triggered by macroeconomic information. However, market contributors quickly started to query whether or not the collapse was purely natural.
On social media, merchants speculated that the scale and velocity of the liquidations instructed one thing extra coordinated than a normal sell-off. Attention quickly turned to Binance.
Why Binance Became the Focus
During the sharpest section of the crash, Binance users reported frozen accounts and failed stop-loss orders, and difficulties accessing the platform. Some merchants additionally pointed to transient flash crashes that pushed property, equivalent to 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 explanation for system delays and show points, whereas reiterating that person funds remained SAFU.
Still, the clarification did not 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 Strategy Work?
On October 12, Binance launched a press release following an inner assessment of the incident. According to the change, core spot and futures matching engines, in addition to API buying and selling, remained operational.
“According to knowledge, the compelled liquidation quantity processed by Binance platform accounted for a comparatively low proportion to the whole buying and selling quantity, indicating that this volatility was primarily pushed by general market situations,” the change noted.
However, Binance acknowledged that sure platform modules skilled transient technical glitches after 21:18 UTC on October 10, and that some property suffered de-pegging because of excessive market fluctuations.
Binance said 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 bundle included $300 million in reimbursement vouchers for eligible impacted merchants, with the remaining funds allotted to low-interest institutional loans.
While Binance was at the middle of group backlash, it was not the solely platform affected amid the crash. Other main exchanges, together with Coinbase and Robinhood, additionally reported service disruptions.
Coinbase’s Bitcoin trading activity also drew scrutiny, although no conclusive proof has linked it to market manipulation or to triggering the crash.
It’s value noting that scrutiny continued in the weeks following the crash; some earlier claims have been later reassessed. One dealer who had publicly accused Binance later retracted these claims.
After reviewing technical knowledge offered by the change, the dealer mentioned Binance’s logs confirmed no system errors. He subsequently deleted the authentic publish, stating he didn’t need to contribute to the unfold of unverified data.
“My essential argument was that ‘API orders failed, and reduce-only orders returned a 503 error.’ But Binance’s technical group offered full logs throughout our assembly, which confirmed that the reduce-only orders by no means encountered a 503 error. An funding agency related to my good friend additionally joined the investigation. The essential account administration group and their accountable workers reviewed the international logs and confirmed that there was no 503 error for reduce-only orders,” the post 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 in the months following October.
After the large deleveraging occasion, the market stayed beneath strain. Bitcoin and Ethereum gave up all of their 2025 beneficial properties, closing the 12 months in the pink. Market specialists 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 said.
The dialogue intensified additional after Ark Invest CEO Cathie Wood’s current feedback. In a current interview with Fox Business, she said:
“What we have now undergone in 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.”
Soon, different {industry} figures started to weigh in. Star Xu, founding father of OKX, commented that folks have “underestimated the affect of 10/10,” arguing that the crash brought about “actual and lasting harm” to the crypto {industry}.
An industry-leading firm, he mentioned, ought to prioritize core infrastructure, belief with customers and regulators, and the long-term well being of the ecosystem. Without mentioning particular corporations, Xu contrasted that preferrred with what he described as a rising deal with short-term beneficial properties.
“Instead, some selected to pursue short-term beneficial properties—repeatedly launching Ponzi-like schemes, amplifying a handful of “get-rich-quick” narratives, and instantly or not directly manipulating the costs of low-quality tokens, drawing thousands and thousands of customers into property carefully tied to them. This has turn into their shortcut for attracting site visitors and person consideration. Legitimate criticism is then drowned out—not via details or accountability, however through aggressive narrative management and coordinated influencer campaigns,” the govt added.
Binance Faces Trader 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 might replace the pricing supply for BNSOL and wBETH, with the replace scheduled for October 14.
StarPlatinum additional claims that greater than $10 billion moved in 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). During the drop, giant movement 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 equivalent to Wintermute and Jump appeared to have restricted exercise in USDe, wBETH, and BNSOL throughout the interval of utmost volatility.
“Pull bids in these books whereas Binance marks collateral off these books, and the liquidation engine eats itself,” the analyst remarked.
They additionally allege a brand new account constructed as much as round $1.1 billion in notional BTC and ETH shorts in the closing 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.
Another person accused Binance of manipulating liquidation timestamps. According to the person, Binance introduced after the crash that it might compensate eligible liquidations occurring after 05:18 (UTC+8).
However, the dealer says his liquidation was recorded on the platform at 05:17:06, putting it simply exterior the eligibility window.
The dealer argues that this timestamp conflicts with an automatic system e mail displaying 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 the most ironclad proof. This is the core of crypto: Code Is Law,” the publish said.
Meanwhile, Binance’s personal assertion cited a distinct timeframe:
“All Futures, Margin, and Loan customers who held USDE, BNSOL, and WBETH as collateral and have been impacted by the depeg between 2025-10-10 21:36 and 22:16 (UTC) will probably be compensated, along with any liquidation charges incurred,” the change mentioned.
Crypto Twitter Erupts With “Scammer” Claims Against CZ
As these claims circulated, it didn’t take lengthy for the tone on social media to escalate. Users started sharing prolonged posts labeling CZ a “scammer” and accusing him and Binance of systematically abusing their market dominance to the detriment of opponents and retail merchants.
Multiple posts gained traction, with a number of going viral as group members amplified the claims and expressed help. As engagement surged, the allegations turned 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 referred to as a “controlled demolition” of the crypto market.
Youssef instructed 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 the United States are a trigger for concern. He claimed the change has turn into a controlled asset that could in the end 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 principally 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 advised BeInCrypto.
Criticism has additionally prolonged to Zhao’s recent comments on the buy-and-hold technique.
“I’ve seen many various buying and selling methods over the years, only a few can beat the easy ‘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 strategy is lifelike for retail customers.
“The greatest rip-off change to ever exit, all mission ought to apply for a delisting from binance,” an analyst asserted.
However, BeInCrypto reporting shows that the weak spot was not exchange-specific. Crypto tokens listed throughout main platforms in 2025 broadly struggled to maintain optimistic worth efficiency.
The development held no matter the change, reflecting a market-wide downturn fairly than points tied to any single buying and selling venue.
That’s not all. Users additionally accused Binance of promoting Bitcoin as we speak amid the market crash.
Binance and CZ Issue Response Amid Backlash on Crypto Twitter
Nonetheless, as the backlash grew louder, Binance moved to mission power. The change introduced plans to convert the entire $1 billion reserve of its Secure Asset Fund for Users (SAFU) from stablecoins into Bitcoin over the subsequent 30 days.
In an open letter to the group, Binance pressured 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 growth, citing a sequence of highlights:
- Binance mentioned it assisted in recovering $48 million throughout 38,648 incorrect person deposits.
- It added that it helped 5.4 million customers and prevented an estimated $6.69 billion in potential scam-related losses.
- It mentioned 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 Smart 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, disregarding the newest allegations as a well-known cycle.
“Not the first time, gained’t be the final time. Been receiving FUD assaults since day 1. Will tackle it in the AMA tonight, look beneath 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 well, unresolved questions are likely to resurface.
The publish The Binance Playbook: Why Crypto Twitter Hates the Biggest Exchange? appeared first on BeInCrypto.
