Crypto Giant Binance Battles False Data Claims as Market Uncertainty Grows
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It’s turbulent times again in crypto-land, and in the current market downturn, false data is causing considerable unrest. This happened this week around Binance, the world’s largest crypto exchange with a market share beyond 40 percent. Binance found itself confronted on Thursday with rumors of allegedly unprecedented fund outflows.
On social media—primarily on X—warnings circulated claiming that between 10 and 17 billion US dollars had been withdrawn from the platform within seven days. Binance quickly dismissed the allegations and pointed to faulty data from third-party providers. Had such large sums of money actually been withdrawn, it would have been a clear indication that many traders currently no longer want to invest in cryptocurrencies and are shifting capital elsewhere. In parallel, the question would have to be raised whether Binance could immediately pay out such amounts.
Contradictory figures cause uncertainty
A popular crypto analyst warned urgently on X (formerly Twitter; the tweet has since been deleted): “Withdraw your funds from Binance. 17 billion dollars in withdrawals over the last 7 days. There is a risk they will become insolvent.” Similar warnings spread rapidly in the crypto community, with the cited outflow volumes varying considerably.
The platform Coinglass had initially reported a 24-hour outflow of 3.76 billion US dollars. Data from OKLink, however, showed significantly lower figures: 46.58 million US dollars in 24 hours and 19.14 million US dollars in seven days. These substantial discrepancies formed the core of the controversy.
Binance explains data errors from third parties
Binance responded promptly to the allegations and published an official statement. The exchange explained that the data cited by Coinglass came from third-party sources and that DefiLlama had previously also shown discrepancies. According to Binance, it would take another 24 to 48 hours for the third-party data to be corrected.
“The data cited by Coinglass comes from third-party sources, and DefiLlama previously also showed discrepancies. It will take another 24 to 48 hours for their data to be restored.”
The exchange directed users to its own transparency tools, including the Proof-of-Reserves page, and external platforms such as CoinMarketCap and OKLink to verify inflows and outflows. At the time of reporting, official Proof-of-Reserves reports showed that all cryptocurrencies are over-collateralized, meaning that more US dollars back the reserves than crypto assets are held.
Binance proposes annual “Withdrawal Day”
In its statement, Binance went beyond mere defense and suggested that regular withdrawal tests on all trading platforms would represent a positive and healthy practice. The exchange recommended the introduction of an annual “Withdrawal Day” for all platforms to thoroughly verify the authenticity of their assets.
Users were urged to carefully check their addresses during such tests: “Confirm, then withdraw,” was Binance’s recommendation.
Background: SAFU fund fully converted to Bitcoin
Parallel to discussions about alleged fund outflows, Binance recently made a significant strategic decision regarding its SAFU fund (Secure Asset Fund for Users). The exchange acquired the final tranche of 4,545 BTC, thereby completing the transition from one billion US dollars in stablecoin reserves to Bitcoin.
This reallocation was completed within 30 days of the original announcement, as promised. The SAFU fund now holds 15,000 Bitcoin worth 1.005 billion US dollars (calculated at a BTC price of 67,000 US dollars at the time of completion).
Binance made the Bitcoin address of the SAFU fund as well as the transaction ID publicly available to ensure transparency. In a statement, the exchange emphasized: “With the SAFU fund now fully in Bitcoin, we reaffirm our belief in BTC as a premier long-term reserve asset.”
