Binance Faces Intense Backlash Over The Market Crash – And Some Claims Are Shocking

Core Insights - Binance, the largest crypto exchange, is facing significant backlash due to system failures during a major market liquidation event, leading to accusations of market manipulation [1][4][6] Group 1: System Failures and User Impact - Users reported that Binance's systems locked up during a critical liquidation wave, preventing them from executing trades [2][5] - Multiple altcoins, including Enjin (ENJ) and Cosmos (ATOM), experienced price crashes to near zero before rebounding [3] - Traders were unable to close or hedge positions, resulting in spiraling losses [4] Group 2: Company Response and Accusations - Binance acknowledged the disruptions, attributing them to "heavy market activity" but assured users that their funds are secure [4] - Users accused Binance of market manipulation, claiming that the system freeze allowed the exchange to profit during the liquidation event [4][6] - High-profile traders alleged that Binance disabled limit and stop-loss functions at critical moments, exacerbating the situation [5] Group 3: Industry Context - Other exchanges, including Coinbase and Robinhood, also reported similar outages during the same period, indicating a broader issue within the industry [5] - This incident is not isolated, as traders noted similar accusations against Binance earlier in the year during another service halt coinciding with large-scale liquidations [6]