Fresh concerns are emerging around Binance as criticism from industry rivals, resurfaced allegations, and notable fund movements fuel speculation of a fresh collapse.
While the exchange debunked all claims of wrongdoing and maintained strong asset disclosures, growing scrutiny from competitors, political figures, and online investigators is keeping the crypto giant under intense market watch.
Rival Criticism Ignites Fresh Controversy Around Binance
Binance is once again in the spotlight, but this time, it’s negative. Recent criticism from OKX CEO Star Xu has sparked fresh fear, uncertainty, and doubt (FUD) across the crypto community. Xu openly criticized Binance’s token listing practices, arguing that centralized exchanges must be held to higher standards of accountability when onboarding new assets.
Interestingly, Xu made the comments while replying to a post by Binance founder Changpeng Zhao, who had criticized the growing scrutiny of centralized exchange token listings compared to those of decentralized exchanges. Xu dismissed Zhao’s position, stating that comparing centralized and decentralized exchanges is not openness, but rather an attempt to avoid responsibility.
The tension between the two industry leaders has also revived older accusations. Xu had previously blamed Binance for contributing to the October 2025 crypto market crash that wiped out tens of billions of dollars in liquidations. According to Xu, the exchange set the stage by launching a temporary user-acquisition campaign tied to USDe. When volatility increased, USDe reportedly depegged rapidly, triggering brutal liquidation cascades across leveraged positions.
Recycled Allegations, Political Claims, and Heavy Outflows Raise Alarm
Beyond the OKX CEO’s criticism, recycled claims from internet investigator CoffeeZilla have resurfaced. CoffeZilla had labeled CZ as “corrupt” and alleged that Binance’s founder bought his way out of jail. A recent Forbes report also shows that Binance currently holds 87% of the Trump-linked stablecoin, USD1.
Meanwhile, political pressure has intensified. US Senator Chris Murphy reportedly accused Binance US of helping facilitate Zhao’s presidential pardon. However, Binance CEO Richard Teng publicly debunked those allegations.
Amid these accusations, market data has added concern. Reports indicate heavy capital outflows from Binance totaling roughly 2,740 BTC and about $729 million in stablecoins, movements that often trigger solvency fears among traders.
Denials, Anti-FUD Campaign, and Conflicting Market Signals
Amid the speculation, Changpeng Zhao has dismissed all accusations, calling them baseless FUD, and reiterated confidence in Binance’s stability. The exchange also launched an anti-FUD contest offering rewards of up to 55 BNB to counter misinformation.
However, instead of calming fears, the campaign triggered skepticism among some community members, with critics warning these could be early warning signs of exchange instability and urging users to withdraw funds as a precaution.
Meanwhile, despite claims of a collapse, the exchange has reportedly recorded about $10.1 billion in inflows over the past 24 hours, with total assets near $134.3 billion, suggesting no immediate liquidity crunch. Thus, the crypto market is watching to see how events will unfold in the coming days.
Evans Kelvin
Temitope Olajide
