Memories of the “10/10” liquidation event are returning, this time with legal threats and mass account deactivations.

On 4th February 2026, many users on X began publicly leaving 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” letter, reportedly sent by Binance’s lawyers to an X user – @Lewsiphur, surfaced online.

Users began sharing screenshots of closed accounts and warning about possible insolvency.

This raised a key question of whether this is a real warning sign of trouble, or just panic spreading through the market?

The letter, signed by Binance’s Senior Legal Counsel, Marcus V. Thorne, demanded that @Lewsiphur withdraw claims that Binance [BNB] was insolvent and linked to the “10/10” crash of the 10th of October 2025.

But instead of stopping the criticism, the letter made things worse.

Moving forward, @Lewsiphur went public on X and said,

 “I really want to expose everything I was told from credible resources but I can’t risk a legal battle.” 

Is Binance becoming 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 event, even though the company says it was caused by global economic issues and excessive leverage, not by any failure on its platform.

For users now leaving the exchange, the worry is about what could happen next.

One user said, “If we use platforms that scam users, we can lose everything.”

…while sharing proof of account closure.

Adding to the fuel, critics are claiming that “the truth is coming out” and warning that the impact could be “catastrophic” for the market.

“This is far worse than the FTX collapse.”

Binance stands strong

Meanwhile, data from CryptoQuant showed a different picture than what’s trending on X.

The blockchain analytics firm noted,

“FUD vs Reality: Binance shows no signs of stress.”

Even though many users are talking about withdrawing funds on social media, blockchain data shows that Binance’s reserves remain stable at around 659,000 BTC.

Money moving in and out of the exchange is still within normal levels, unlike during the FTX collapse, when reserves dropped sharply.

This shows a clear gap between online panic and what is actually happening on the blockchain.

In the past, serious fears about exchanges led to large, sudden withdrawals, but this time, that hasn’t happened.

Bitcoin [BTC] balances on Binance are following normal long-term trends instead of reacting to short-term rumors.

However, prices tell a different story.

BNB price actions and more

BNB has fallen to $691.43, down 9.41% in one day.

Bitcoin [BTC] is also down, trading at $70,634.70 after losing nearly 8% in 24 hours and about 20% in a week.

Some critics see this as a sign of trouble at Binance, but it may simply reflect wider market panic.

For now, blockchain data suggests Binance is still stable.

But with the market in extreme fear, trust in major crypto platforms remains very fragile.

Final Thoughts

• The Binance episode shows how quickly confidence can collapse when fear meets uncertainty.
• Price declines in BNB and Bitcoin appear linked more to broader market stress than to exchange-specific issues.

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Author: Ishika Kumari