Binance, the largest crypto exchange in the US, has reportedly denied rumors about its financial issues and the alleged cease-and-desist letter. The exchange clarified that the speculation circulating on social media about its bankruptcy is fabricated.
Binance Rejects Insolvency Claims, Calls Viral Letter Fake
Amid growing rumors about Binance’s financial crisis and bankruptcy, a new claim went viral involving an alleged cease-and-desist notice from the exchange. However, the team clarified that the letter was not shared by Binance, stating, “This letter is not from Binance.” The platform also denied the insolvency claims, arguing that Binance remains financially strong.
On Wednesday, an individual called Lewsiphur took to X, asserting that Binance was insolvent. He added that this financial crisis is poised to have a “catastrophic” impact on the broader crypto market.
Soon, Lew came with another X post, claiming that the largest crypto exchange sent him a cease-and-desist notice. As per a screenshot shared by the user, the crypto trading platform has asked him to remove the insolvency post, threatening him with potential legal actions. This post went viral through the social media platform, with many doubting the exchange’s financial stability.
It is worth noting that the assumptions contradicted Binance’s latest Bitcoin purchase. As CoinGape reported, the platform bought an additional 1,315 BTC, expanding its SAFU funds.
However, Binance responded to the post and the circulating rumors. The platform called it fabricated and asserted that it has not issued any legal warning or demanded the removal of posts, calling the rumors misleading. The team wrote, “It’s a forgery with a very active imagination. Please stay alert to fake documents and misleading information.”
As part of these growing speculations, many of the customers have already withdrawn their funds. Binance co-founder Yi He shared an X post, stating,
Rumors Persist Despite Exchange’s Denial
Although Binance denied the rumor, it continues to circulate on X. The post that alleged the cease-and-desist letter is still live. The user also asserted that he would host a livestream to share evidence for his allegations.
Over the past few weeks, the community has been worried about the exchange’s possible insolvency. Many linked it with the October 2025 market crash. They claim that during the period, the crypto exchange users faced issues such as frozen accounts, failed trades, and transaction delays. However, founder Changpeng Zhao has consistently rejected these claims, calling them unrealistic.
Source: https://coingape.com/binance-denies-fake-cease-and-desist-claim-amid-bankruptcy-rumors/
