ChainStreet Briefing
- Binance Co-Founder Yi He apologized for transaction issues and offered compensation for directly attributable losses during the recent market crash.
- Users widely reported frozen accounts, disabled stop-loss orders, and stalled withdrawals on Binance and other major CEXs.
- Critics, including financial analysts, allege Binance deliberately blocked trades to maximize profits, calling for investigations into market manipulation.
As a brutal $19 billion crypto meltdown sends shockwaves through digital markets, Binance is now offering compensation for users affected by transaction issues, a move that comes alongside a stark apology from co-founder Yi He. This unprecedented offer, however, lands amid a torrent of user complaints and mounting allegations from analysts and traders who claim the exchange deliberately manipulated conditions during the crash, effectively trapping users and maximizing its own profits.
Binance Faces Deluge of Complaints Amid Market Chaos
The recent market fluctuations, exacerbated by major global economic news, led to what Yi He described as a “substantial influx of users,” overwhelming Binance’s systems. Across the platform, traders reported frozen order books, stalled withdrawals, and critical risk management tools like stop-loss functions reportedly failing or being disabled.
One user, @LeftTheChat2k25, recounted an experience with a “frozen transaction (which I couldn’t cancel)” on Binance Wallet, leading to a loss. They noted, “the support of @binance told me that can happen and it not their fault.”
The Binance’s Co-Founder and Chief Customer Service Officer, acknowledged the severity of the situation in a public statement: “Due to significant market fluctuations over the past 16 hours and a substantial influx of users, some users have encountered issues with their transactions. I deeply apologize for this.”
Richard Teng, Binance CEO, addressed the turmoil directly: “The last 24 hours have been turbulent for the crypto market, and I know many of you faced challenges on our platform. I’m truly sorry to everyone who was impacted.” Teng reiterated the commitment to resolution, stating, “We don’t make excuses — we listen closely, learn from what happened, and are committed to doing better. If you’re still experiencing any unresolved issues, please reach out to our Binance Support team. Every case will be handled with the care and attention it deserves, and compensation will be provided where applicable.”
Echoing this, Binance’s Co-Founder and Chief Customer Service Officer, also acknowledged the severity: “Due to significant market fluctuations over the past 16 hours and a substantial influx of users, some users have encountered issues with their transactions. I deeply apologize for this.”
She added that Binance would “review your account activity individually, analyze the situation, and provide compensation accordingly,” but specified that “losses resulting from market fluctuations and unrealized profits are not eligible for compensation.” Both executives concluded by advising users to “stay informed and take care during these times,” recognizing the ongoing market volatility.
Manipulation Claims Spark Outrage
Despite Binance’s apology and compensation offer, the incident has ignited intense criticism and fueled allegations of deliberate market manipulation. Jacob Kinge, CEO of SwanDesk and a financial analyst, responded sharply, stating, “Trading halted, exchange went offline, and your margins liquidated by an artificially manipulated crash from insiders? That’s okay! Just email support team and get stuck in a forever queue!”
Kinge’s comments reflect a deeper skepticism, referencing “hundred or so other times they played these games to siphon money from users and never helped, this time it’s real guys!”
@CryptoCowboy_AU leveled direct accusations, claiming Binance “froze user accounts across the board, preventing traders from accessing their funds at critical moments. Limit orders and stop-loss functions were conveniently disabled. A move that ensured @binance maximized profits during the largest liquidation event in history.”
This user went further, suggesting, “The new CEO of Binance @_RichardTeng could likely face prison for this market manipulation.” The repeated nature of such issues on centralized exchanges (CEXs) has become a recurring concern.
@GodsBurnt urged users to “TAKE YOUR FUNDS OFF CENTRALIZED EXCHANGES IMMEDIATELY,” noting, “COINBASE AND ROBINHOOD USERS ARE REPORTING ISSUES SELLING AND WITHDRAWING THEIR CRYPTO.”
ChainStreet’s Take: Testing the Limits of Centralized Trust
Binance’s latest operational failures, juxtaposed with a public apology and an offer of conditional compensation, represent a critical test of trust for centralized exchanges in the digital economy. While market volatility can strain any system, the consistent pattern of user accounts being locked, and trading controls disabled during peak liquidation events, raises profound questions about operational integrity and accountability.
The episode highlights the real risks of relying on centralized exchanges and the lack of transparency in how trades are executed. If claims that profits were deliberately prioritized over users are confirmed, it would mark a serious breach of trust, echoing past criticisms of traditional finance during crises.
Regulators, who have been watching the crypto sector closely, are likely to see these reports as further reason to impose stricter rules, demanding clearer disclosures on exchange solvency, order books, and stronger consumer protections. For the wider Web3 community, these repeated exchange failures underline the importance of decentralized platforms: removing single points of failure and giving users direct control over their funds.
