Binance Denies Insolvency Rumors, Calls Viral Cease-and-Desist Letter Fake

Binance, one of the world’s largest cryptocurrency exchanges, has firmly rejected circulating rumors about its alleged financial instability and bankruptcy. The exchange clarified that recent claims spreading across social media platforms, particularly X (formerly Twitter), are entirely fabricated, including a viral cease-and-desist letter that was falsely attributed to Binance.

The controversy began when a social media user known as Lewsiphur claimed that Binance was insolvent and warned that the situation could have a “catastrophic” impact on the broader crypto market. Shortly after, the same user shared a screenshot of what he alleged was a cease-and-desist notice from Binance, demanding the removal of the insolvency-related posts and threatening legal action. The screenshot quickly gained traction online, intensifying speculation around Binance’s financial health.

In response, Binance publicly denied issuing any such legal notice and labeled the document as fake. The exchange stated clearly that it has not demanded the removal of posts or issued legal threats, warning users to remain cautious of forged documents and misleading narratives circulating online. Binance emphasized that the rumors do not reflect its actual financial position.

Notably, these claims surfaced despite reports that Binance recently purchased an additional 1,315 Bitcoin, adding to its Secure Asset Fund for Users (SAFU). This move has been cited by several industry observers as evidence contradicting insolvency allegations and supporting Binance’s assertion that it remains financially strong.

Amid the speculation, some users reportedly initiated large-scale fund withdrawals as a precaution. Binance co-founder Yi He addressed the situation by acknowledging the withdrawal activity, describing it as a stress test for centralized exchanges. She encouraged users to double-check wallet addresses during withdrawals, highlighting the irreversible nature of blockchain transactions.

Despite Binance’s denial, the rumors continue to circulate, with the original posts still live and the accuser promising further “evidence” through a livestream. Ongoing concerns within the crypto community have also been linked to past claims of account freezes and transaction delays during previous market volatility. However, Binance founder Changpeng Zhao has consistently dismissed these allegations, calling them unrealistic and unfounded.

As misinformation continues to spread, Binance maintains that it remains operationally and financially stable, urging the community to rely on verified information rather than social media speculation.