Binance has denied issuing legal threats after a social media user claimed the exchange sent a cease-and-desist letter over allegations that it is insolvent.
The claims emerged after X user Lewsiphur posted that Binance was insolvent and warned of a “catastrophic” market impact, later sharing an image of what he said was a cease-and-desist order demanding the post be deleted.
“This letter is not from Binance,”
The exchange’s customer support account said, calling the document “a forgery with a very active imagination” and urging users to remain alert to fake materials.
The alleged notice spread widely online despite the original insolvency post remaining live, with the user also promoting a livestream to present evidence for his claims.
Rumours about Binance’s financial health have circulated in recent weeks, often linked to accusations that the exchange contributed to the October 2025 market crash.
Binance has repeatedly denied playing a role in that event, while former chief executive Changpeng Zhao has dismissed such claims as unfounded during public appearances.
Yi He, a Binance co-founder, said withdrawal campaigns can act as a stress test for exchanges, adding that Binance’s onchain asset balances increased despite calls for mass withdrawals.