US SEC Allegedly Investigating Binance Over October 10 Liquidation Event
Rumors of a doable US Securities and Exchange Commission (SEC) investigation into Binance have resurfaced lengthy‑working questions concerning the October 10, 2025 liquidation event, the most important market wipeout in crypto historical past.
October 10 Crash Back In Focus
For context, through the October 10 occasion, roughly $19 billion in leveraged positions have been liquidated, with $3.21 billion erased in a single minute. Around 1.6 million merchants have been compelled out of their positions as Bitcoin plunged from about $122,000 to $104,000.
Speculation round Binance’s function within the crash has intensified following a post on X (beforehand Twitter) by market skilled Hugo Crypto. In his message, he cautioned that he couldn’t independently affirm experiences of an SEC probe into Binance, stressing that the declare stays a rumor.
However, he argued that the broader story surrounding the October 10 collapse warrants critical consideration no matter whether or not a proper investigation is underway.
Since the crash, a sequence of developments has stored Binance underneath scrutiny. Shortly after the occasion in October 2025, the alternate attributed the turmoil to a broader macroeconomic shock and denied duty, later paying about $283 million in compensation.
In January 2026, Ark Invest CEO Cathie Wood acknowledged throughout an look on Fox Business {that a} “Binance software program glitch” was chargeable for triggering the crash.
Later that month, OKX CEO Star Xu publicly accused Binance of partaking in “irresponsible advertising and marketing campaigns,” additional escalating tensions between main exchanges.
In early February, Binance reportedly despatched stop‑and‑desist letters to X customers who have been speculating concerning the alternate’s solvency. Now, recent rumors suggesting potential SEC involvement have added a brand new layer of uncertainty, although no official affirmation has been made.
Binance Denies Responsibility
Regardless of whether or not the SEC is actively investigating, some former regulators argue that the October 10 crash itself calls for a radical evaluation.
Salman Banaei, a former official on the Commodity Futures Trading Commission (CFTC), has in contrast the incident to the 2010 Flash Crash in conventional markets, saying it deserves a equally rigorous investigation.
The alternate’s management, nonetheless, continues to reject claims that the alternate brought about the market collapse. At the top of January, former CEO Changpeng Zhao publicly dismissed accusations that Binance was chargeable for the October 2025 crash.
Zhao addressed claims that technical points and pricing discrepancies on Binance triggered the report‑breaking liquidations. He emphasised that, following the crash, the platform provided roughly $600 million in compensation to affected customers and companies.
Featured picture from OpenArt, chart from TradingView.com
