Catenaa, Friday, February 06, 2026-Binance said a widely shared cease-and-desist notice alleging the exchange is insolvent is fake, responding after the document circulated on social media.
The notice, posted by X user Lewsiphur, claimed Binance faced insolvency and warned the situation could surpass the impact of the FTX collapse.
Lewsiphur later shared an image of a document saying Binance would take legal action unless the post was deleted by 5 p.m. ET.
The post quickly gained attention and was widely reshared.
Binance Customer Support clarified the notice was a forgery, warning users to remain alert to fake documents and misleading information. The original post remains live, and Lewsiphur plans a livestream to present supporting evidence while also promoting an online casino.
Rumors of Binance insolvency have circulated in recent weeks, partly linked to issues during the October 2025 market crash.
Users reported frozen accounts, failed orders, and deposit and withdrawal problems during a period of extreme volatility caused by macro factors, high leverage, and thin liquidity. Binance has repeatedly denied involvement in the crash, with former CEO Changpeng Zhao dismissing claims as “far-fetched.”
The distrust has prompted some users to transfer funds into self-custody wallets, contributing to ongoing fear, uncertainty, and doubt in the crypto community. Binance co-founder Yi He noted that while withdrawals increased after the campaign, such actions can act as a stress test for trading platforms.
