Binance has denied issuing any legal threats after a document circulating on social media claimed the exchange sent a cease-and-desist letter over allegations of insolvency. The company said the letter is fabricated and warned users to be cautious of misleading information.
Alleged Cease-and-Desist Sparks Online Attention
The controversy began when a social media user Lew alleged that Binance was insolvent and claimed the situation could have severe consequences for the broader crypto market. Hours later, the same user shared an image of what was described as a cease-and-desist notice, stating that Binance demanded the post be deleted or legal action would follow. The image quickly spread, prompting speculation and reposts across the platform.
Binance publicly responded that the letter did not originate from the company, calling it a forgery and emphasizing that it had not taken legal action against the individual.
Ongoing Insolvency Rumors and Market Context
The incident comes amid renewed scrutiny of Binance following persistent rumors about its financial health. Some claims have linked the exchange to market disruptions during the October 2025 crypto sell-off, when users reported temporary trading and withdrawal issues during periods of extreme volatility. Binance has consistently denied responsibility for those events, attributing them to broader market conditions.
Lingering skepticism has fueled calls for users to move assets into self-custody wallets. Binance executives have acknowledged these withdrawal campaigns, framing them as stress tests rather than signs of distress. The exchange maintains that asset balances remain stable despite ongoing speculation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.