Binance Denies Fake Cease-and-Desist Claim Amid Bankruptcy Rumors

Binance, the largest crypto exchange in the US, has reportedly denied rumors about its financial issues and the alleged cease-and-desist letter. The exchange clarified that the speculation circulating on social media about its bankruptcy is fabricated.

Binance Rejects Insolvency Claims, Calls Viral Letter Fake

Amid growing rumors about Binance’s financial crisis and bankruptcy, a new claim went viral involving an alleged cease-and-desist notice from the exchange. However, the team clarified that the letter was not shared by Binance, stating, “This letter is not from Binance.” The platform also denied the insolvency claims, arguing that Binance remains financially strong.

On Wednesday, an individual called Lewsiphur took to X, asserting that Binance was insolvent. He added that this financial crisis is poised to have a “catastrophic” impact on the broader crypto market.

Well looks like it’s all unfolding and the truth is coming out

Binance is insolvent and they are solely responsible for 10/10.

The effect this will have on the market will be catastrophic.

This is far worse than the FTX collapse. https://t.co/kD0ZXt8sNn

— Lew (@Lewsiphur) February 3, 2026

Soon, Lew came with another X post, claiming that the largest crypto exchange sent him a cease-and-desist notice. As per a screenshot shared by the user, the crypto trading platform has asked him to remove the insolvency post, threatening him with potential legal actions. This post went viral through the social media platform, with many doubting the exchange’s financial stability.

It is worth noting that the assumptions contradicted Binance’s latest Bitcoin purchase. As CoinGape reported, the platform bought an additional 1,315 BTC, expanding its SAFU funds.

However, Binance responded to the post and the circulating rumors. The platform called it fabricated and asserted that it has not issued any legal warning or demanded the removal of posts, calling the rumors misleading. The team wrote, “It’s a forgery with a very active imagination. Please stay alert to fake documents and misleading information.”

As part of these growing speculations, many of the customers have already withdrawn their funds. Binance co-founder Yi He shared an X post, stating,

“Some friends in the community have initiated a withdrawal campaign. Although the number of assets in Binance addresses has increased after the campaign was launched, I believe that regularly initiating withdrawals from all trading platforms is a very effective stress test. I hope everyone carefully checks the addresses during the withdrawal process to minimize errors, as there is no way to recover funds on the blockchain.”

Rumors Persist Despite Exchange’s Denial

Although Binance denied the rumor, it continues to circulate on X. The post that alleged the cease-and-desist letter is still live. The user also asserted that he would host a livestream to share evidence for his allegations.

Over the past few weeks, the community has been worried about the exchange’s possible insolvency. Many linked it with the October 2025 market crash. They claim that during the period, the crypto exchange users faced issues such as frozen accounts, failed trades, and transaction delays. However, founder Changpeng Zhao has consistently rejected these claims, calling them unrealistic.