Binance came very close to a full bank run after rumors of insufficient reserves circulated on Feb 2, 2026. It had temporarily paused withdrawals on the same day, which gave strong support to the rumors of insufficient reserves, a dire situation faced by FTX mere days before its bankruptcy.
Amid withdrawals post the October 10 crash and subsequent market sell-off, it was alleged that the exchange might not have sufficient reserves to cover its user deposits.
Binance also sent a cease-and-desist notice to the X user Lewsiphur regarding his claims about the exchange’s insolvency.
Is Binance Shutting Down? Here’s The Full Story Around the FUD
Posted by emperordas
5 Comments
tldr; Rumors of Binance’s insolvency and insufficient reserves emerged after a temporary pause in withdrawals on February 2, 2026, following a massive market crash on October 10, 2025. The crash, triggered by rumors of a U.S. tariff on Chinese goods, led to significant liquidations. Binance faced allegations of contributing to the crash through high-risk products and potential internal short positions. However, Binance maintains $140 billion in on-chain reserves and has taken steps to stabilize its funds, including purchasing $1 billion in Bitcoin.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
so during a panic, do you buy or sell? take your money and leave perhaps?
Well for reminder, there were always rumors about Binance could bankrupt in previous bear markets. And when I look back to those times, those were felt like manipulation created by themselves.
Shut it down
“might not be at risk” – non-statement