Memories of the “10/10” liquidation return, this time with legal threats and mass account deactivations.
On February 4, 2026, many users on X started going public to leave Binance [BNB]the world’s largest crypto exchange.
They said they feared a collapse similar to that of FTX.
The letter acted as a catalyst
The situation escalated after a “cease and desist” letterallegedly sent by Binance’s lawyers to an X user – @Lewsiphur, has surfaced online.
Users began sharing screenshots of closed accounts and warning of possible insolvency.
Source: Wang BNB/X
This raised the important question: is this a real warning sign of trouble, or is it just panic spreading across the market?
The letter, signed by Binance’s Senior Legal Counsel Marcus V. Thorne, demanded that @Lewsiphur retract Binance’s claims [BNB] was insolvent and related to the “10/10” crash of October 10, 2025.
But instead of stopping the criticism, the letter only made matters worse.
Going forward, @Lewsiphur went public on X and said:
“I really want to reveal everything I have been told from credible sources, but I cannot risk a legal battle.”
Will Binance become FTX 2.0?
Needless to say, the “10/10” crash is still a sensitive topic in the crypto world.
Many traders continue to blame Binance for the $19 billion liquidation, even though the company says it was caused by global economic problems and excessive debt, and not a glitch on its platform.
For users now leaving the exchange, the concern is what might happen next.
One user said“If we use platforms that scam users, we could lose everything.”
…as we share evidence of the account closure.
Adding fuel to the fire are the critics to claim that “the truth is coming out” and warns that the impact could be “catastrophic” for the market.
“This is much worse than the collapse of the FTX.”
Binance is strong
Meanwhile, data from CryptoQuant showed a different view than what is trending on X.
The blockchain analytics company noted:
“FUD vs. Reality: Binance Shows No Signs of Stress.”
While many users are talking about withdrawing funds on social media, blockchain data shows Binance’s reserves holding steady at around 659,000 BTC.
Money moving in and out of the stock market is still at normal levels, unlike during the FTX collapse when reserves fell sharply.
This shows a clear disconnect between online panic and what is actually happening on the blockchain.
In the past, serious fears about the stock market led to large, sudden withdrawals of money, but this time, that didn’t happen.
Bitcoin [BTC] balances on Binance follow normal long-term trends rather than reacting to short-term rumors.
However, prices tell a different story.
BNB price promotions and more
BNB has fallen to $691.43, down 9.41% in one day.
Bitcoin [BTC] is also down, trade at $70,634.70 after losing almost 8% in 24 hours and around 20% in a week.
Some critics see this as a sign of trouble at Binance, but it could simply reflect broader market panic.
For now, blockchain data suggests that Binance is still stable.
But with the market in extreme fear, trust in the major crypto platforms remains very fragile.
Final thoughts
- The Binance episode shows how quickly trust can collapse when fear and uncertainty collide.
- Price declines in BNB and Bitcoin appear to be more related to broader market stress than to exchange-specific issues.