Rumors Emerge of Binance Considering Legal Action Against X Users Over Criticism

How the 10/10 Flash Crash Put Binance Under Fire

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.

Community Reactions

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.

What Readers Should Watch Next

• Binance’s Official Updates: Monitor Binance’s blog or X announcements for any clarifications on the alleged cease-and-desist notices, as CZ has already labeled them FUD but further denials or admissions could shift sentiment.
• BNB Price Movements: Track BNB’s performance in the coming weeks, given historical 5-10% dips from similar controversies, with potential rebounds if the exchange provides proof-of-reserves or transparency reports.
• Influencer and Community Reactions: Follow key X figures like Leonidas for updates on verified threats, as escalating stories could amplify FUD or lead to coordinated user actions like mass withdrawals.
• Related Lawsuits: Keep an eye on ongoing cases, such as Wintermute’s suit over 10/10 losses or the FTX estate’s claims against CZ, which might intersect with these rumors and impact Binance’s operations.
• Broader Crypto Sentiment: Observe if this sparks similar criticisms of other exchanges like Coinbase or Kraken, potentially signaling a trend toward stricter self-regulation or free speech debates in the industry.