The Binance Playbook: Why Crypto Twitter Hates The Biggest Exchange?

What Happened

On October 10, US President Donald Trump announced 100% tariffs and export controls targeting China. The announcement immediately rattled global markets, sending risk assets sharply lower.

Two days later, on October 14, Binance launched a $400 million support initiative. The package included $300 million in reimbursement vouchers for eligible impacted traders, with the remaining funds allocated to low-interest institutional loans.

Market Context

The October Market Crash: What Happened?

Initially, the crash was widely viewed as a market-wide panic triggered by macroeconomic news. However, market participants soon began to question whether the collapse was purely organic.

Binance publicly acknowledged disruptions during the event. The exchange cited “heavy market activity” as the cause of system delays and display issues, while reiterating that user funds remained SAFU.

Still, the explanation failed to calm all critics. Some users accused Binance of benefiting from the trading freeze, alleging that the disruption allowed the exchange to profit during peak volatility.

On October 12, Binance released a statement following an internal review of the incident. According to the exchange, core spot and futures matching engines, as well as API trading, remained operational.

“According to data, the forced liquidation volume processed by Binance platform accounted for a relatively low proportion to the total trading volume, indicating that this volatility was mainly driven by overall market conditions,” the exchange noted.

However, Binance acknowledged that certain platform modules experienced brief technical glitches after 21:18 UTC on October 10, and that some assets suffered de-pegging due to extreme market fluctuations.

Coinbase’s Bitcoin trading activity also drew scrutiny, though no conclusive evidence has linked it to market manipulation or to triggering the crash.

Why It Matters

On social media, traders speculated that the scale and speed of the liquidations suggested something more coordinated than a standard sell-off. Attention soon turned to Binance.

Details

Crypto Twitter is angry again. This time, the target is familiar: Binance, the world’s largest crypto exchange, and its co-founder Changpeng Zhao (CZ).

Over the past few days, major allegations have taken over Twitter (or X) timelines, with some users calling him “a scammer” and demanding he be “sent back to prison.” So what is actually behind the latest accusations, and how much of it is supported by verifiable evidence?

One of the most serious allegations facing Binance dates back to October, during what later became known as “Crypto Black Friday.”

Crypto was no exception. BeInCrypto reported that Bitcoin fell around 10%. Major altcoins followed suit: Ethereum (ETH), XRP (XRP), and BNB (BNB) each declined by more than 15%.

Within 24 hours, more than $19 billion in leveraged positions were liquidated, marking the largest liquidation event tracked by crypto data analytics firm CoinGlass.

Why Binance Became the Focus

During the sharpest phase of the crash, Binance users reported frozen accounts and failed stop-loss orders, and difficulties accessing the platform. Some traders also pointed to brief flash crashes that pushed assets, such as Enjin (ENJ) and Cosmos (ATOM), to near zero.

BeInCrypto reported that three Binance-listed assets, including USDe, wBETH, and BNSOL, temporarily lost their pegs amid the turmoil.

Did Binance’s Compensation Strategy Work?

Binance stated that it completed compensation for affected users within 24 hours, distributing approximately $283 million across two batches.

While Binance was at the center of community backlash, it was not the only platform affected amid the crash. Other major exchanges, including Coinbase and Robinhood, also reported service disruptions.

It’s worth noting that scrutiny continued in the weeks following the crash; some earlier claims were later reassessed. One trader who had publicly accused Binance later retracted those claims.

After reviewing technical data provided by the exchange, the trader said Binance’s logs showed no system errors. He subsequently deleted the original post, stating he did not want to contribute to the spread of unverified information.