Binance Denies Forged Cease-and-Desist as Bankruptcy Rumors Spread

A cease-and-desist letter alleging Binance was bankrupt circulated online and ignited renewed fears about the exchange’s solvency among traders and on social media ^[1][3].

Binance publicly rejected the document as a forgery and denied the insolvency claims, saying the circulating warning letter was not authentic ^[1][3].

Binance co-founder He Yi said a social-media-driven 'withdrawal campaign' did not deplete the exchange’s holdings and that total assets in Binance wallet addresses actually increased after the campaign began, which he cited as evidence of maintained liquidity and reserves ^[4].

As the rumors gained traction on X, founder Changpeng Zhao (CZ) responded strongly and warned of legal action against those spreading the bankruptcy claims ^[5].

Commentary and influencer posts also revived comparisons to past exchange collapses, with some observers describing the episode as 'FTX 2.0' rhetoric amid the allegations ^[2].

Binance has denied the authenticity of the cease-and-desist notice and the associated insolvency allegations while executives point to on-chain balances as evidence of liquidity; the episode underscores how quickly forged documents and social-media posts can trigger market concern ^[1][3][4][5].