TLDR
- Binance’s system failures led to frozen accounts and failed stop-loss orders.
- Altcoins like ENJ and ATOM saw flash crashes due to Binance technical issues.
- Users accuse Binance of market manipulation during the massive sell-off.
- Binance faces calls for regulatory investigation over recent technical failures.
Binance, the world’s largest cryptocurrency exchange, is facing intense backlash following a major market crash triggered by President Trump’s tariff escalation. Traders have raised serious concerns about system failures during the crisis, claiming their accounts were frozen, stop-loss orders failed, and altcoins experienced flash crashes. These disruptions, they argue, amplified the ongoing market sell-off, leading to further losses. Allegations of market manipulation and claims of the exchange disabling key trading functions have added to the outrage.
System Failures During Market Crash
During the sharpest sell-off of the year, multiple coins, including Enjin (ENJ) and Cosmos (ATOM), experienced significant price drops on Binance. At one point, these altcoins appeared to briefly reach prices as low as $0.0000 and $0.001, before recovering.
Traders reported that they were unable to close or hedge their positions during these moments of volatility. The market crash was already severe, with $200 billion wiped off the crypto market, but these technical issues seemed to worsen the situation.
Binance confirmed that its system faced disruptions, citing “heavy market activity” as the cause. The exchange assured users that their funds were “SAFU” (Secure Asset Fund for Users). Despite these reassurances, many traders expressed dissatisfaction with the way Binance handled the situation, questioning the adequacy of the exchange’s response during such a critical period.
Allegations of Market Manipulation
Several traders have accused Binance of market manipulation, claiming the platform’s technical failures allowed the exchange to profit from the chaos. These accusations stem from claims that the exchange disabled key trading functions like limit and stop-loss orders at critical moments. According to some users, the freezing of accounts and order books led to forced liquidations, while they were unable to execute trades to limit their losses.
Some traders went further, accusing Binance of intentionally allowing these failures to occur so the exchange could capitalize on the massive liquidation wave that followed. These allegations have sparked outrage within the crypto community, especially since other exchanges, including Coinbase and Robinhood, also reported similar issues during the market crash.
Calls for Regulatory Investigation
The backlash against Binance has prompted many to call for a regulatory investigation into the exchange’s internal controls. Critics argue that the platform’s handling of the situation raises serious questions about its ability to manage such a large and volatile market. With several similar incidents in the past, there is growing concern about the stability and transparency of centralized exchanges like Binance.
In addition to the regulatory calls, many retail traders are urging others to move their assets off centralized exchanges. They warn that the technical failures and alleged manipulation during the crash highlight the risks of relying on platforms that are not fully transparent or equipped to handle extreme market conditions.
Ongoing Issues and User Complaints
Although Binance has stated that its systems are back online, some users are still facing delayed withdrawals and frozen peer-to-peer (P2P) transactions. These ongoing issues are adding to the frustration of traders who believe they were unfairly impacted by the exchange’s failures during the market crash. The company has yet to announce any compensation for those affected, further fueling the criticism.
For now, Binance has not provided a detailed explanation of the specific failures that occurred, leaving many traders uncertain about the platform’s ability to prevent such issues in the future. As the situation develops, it remains to be seen whether regulatory authorities will take action or if the exchange will implement new measures to improve its stability and transparency.
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