Rumors emerge saying Binance may take legal action against critics on X, though the exchange has firmly denied the allegations.
Author: Arushi Garg
Steady attention without excessive speculation.
Rumors emerge on X claiming Binance is issuing legal threats, including cease-and-desist notices, against users criticizing its role in the Oct. 10, 2025 “10/10” flash crash, which saw over $1B in liquidations linked by critics to USDe leveraged products. Influencers like Leonidas say some threats are real, while Binance denies others as forgeries meant to spread misinformation.
Co-founder Changpeng “CZ” Zhao has dismissed the claims as FUD, saying Binance welcomes constructive criticism, even as the exchange faces increased scrutiny and lawsuits related to losses from the crash.
High Signal Summary For A Quick Glance
Rumors on X claim Binance has been sending legal threats, including cease-and-desist notices, to critics who blamed the exchange for the October 10, 2025 “10/10” flash crash that wiped out billions through liquidations. Much of the criticism centers on Binance’s handling of USDe in its wealth products, which some users say encouraged risky trading during extreme volatility. While Binance has denied issuing fake notices and called some documents forgeries, influencers like Leonidas say they have confirmed real cases of legal warnings tied to these discussions.
Binance co-founder Changpeng “CZ” Zhao has dismissed the claims as FUD, saying the exchange welcomes fair criticism, but the issue has gained traction due to Binance’s past responses to controversy. Similar disputes in recent years, including legal threats over criticism and major regulatory cases, have caused short-term drops in BNB and negative sentiment before markets stabilized. Still, repeated incidents have kept Binance under close scrutiny, making investors more cautious even when prices recover.
Key milestones in Binance’s regulatory battles and post-FTX controversies
CZ’s public criticism of FTX accelerates its collapse, triggering accusations that Binance uses aggressive tactics against competitors and critics.
The U.S. Commodity Futures Trading Commission sues Binance and CZ for operating unregistered platforms and failing AML compliance.
The SEC files charges against Binance, alleging unregistered securities offerings, commingling, and misleading investor disclosures.
Binance reaches a $4.3B settlement with the U.S. Department of Justice over AML violations; CZ steps down as CEO.
The SEC drops its case against Binance, closing one of the last major enforcement actions from earlier regulatory crackdowns.
A severe market crash wipes out over $1B in leveraged positions, with critics blaming Binance’s handling of USDe products.
Binance threatens legal action against users alleging excessive token listing fees, escalating backlash after the crash.
Reports claim market maker Wintermute sues Binance over hundreds of millions in losses tied to the 10/10 event.
Influencer Leonidas confirms Binance issued cease-and-desist letters to X users criticizing the exchange over the 10/10 crash.
Crypto users on X and forums have reacted strongly, with many seeing the rumors as Binance overstepping and worrying about limits on free speech after the 10/10 crash. This anger has led to boycott calls and closer scrutiny of centralized exchanges, though community notes have also flagged some claims as misleading, showing a clear split in opinion.
Influencers like Leonidas have shared cases they say are real, increasing FUD and pushing users to diversify, while Binance supporters defend the exchange, pointing to its size and past recoveries. Overall, the debate has widened into a broader discussion about accountability in crypto and growing interest in decentralized options.
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