Binance denies issuing legal threats over insolvency allegations

Binance has refuted a widely circulated cease-and-desist notice, which claimed the exchange would take legal action against an X user, Lewsiphur, for alleging Binance's insolvency. Lewsiphur had claimed the world's largest crypto exchange was insolvent, warning of a catastrophic market effect worse than the FTX collapse. Binance Customer Support explicitly stated the letter was a "forgery with a very active imagination" and urged users to be wary of fake documents. Despite the alleged deadline in the fake notice, the user's post remained live. This incident occurs amid ongoing rumors about Binance's solvency, often linked to its performance during a recent market crash, which the exchange has repeatedly denied involvement in. Co-founder Yi He acknowledged community withdrawal campaigns as an effective stress test for trading platforms, noting that Binance's asset numbers had increased despite the calls for withdrawals.

(Source：The Block)