Binance co-founder He Yi defiant that withdrawal campaign backfired

Binance co-founder said Thursday that a community-led push to withdraw funds was an effective stress test for the crypto exchange. 

Binance CEO Yi He wrote a message on X earlier today to address ongoing rumors about the platform’s insolvency, claiming the chatter has actually increased the number of exchange addresses. 

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.

Yi He. 

Her remarks came as on-chain data showed movements in Bitcoin balances off the exchange over the past week. According to charts from CryptoQuant tracking Binance’s Bitcoin exchange netflows, there has been heavy volatility in the last seven days. 

Binance exchange reserves plummet 16% in the past week

After witnessing strong inflows on January 29 and 31, Binance recorded one of the largest daily outflows of the period last Monday, when the king coin was trading at around $78,000. That outflow reached 5,800 BTC, the deepest negative netflow in the weekly window. 

Yet, the days after the slow start to the business week saw renewed inflows, including a large positive netflow of 2,700 BTC on February 4. At the same time, Binance exchange reserve declined due to falling market prices. 

Bitcoin reserves were around $55–56 billion about a week ago, but have now slipped by 16% to about $46.3 billion at the time of this reporting. The asset’s own price also fell by 19% during the same period, likely contributing to the reduced dollar value of Binance’s reserves. 

Yi He advised users moving funds off the exchange to carefully verify the recipient addresses before completing their withdrawal requests, and recommended a cold wallet for those who lacked confidence in Binance. 

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. If software wallets like Binance Wallet or Trust Wallet do not meet your needs, you might also try hardware wallets such as OneKey HQ

Yi He

On Wednesday, X user Lewsiphur claimed Binance was responsible for last October’s $20 billion crypto market liquidation wipeout, adding that it is insolvent and could cause a market fallout worse than FTX. 

The rumors arose after several traders on Crypto Twitter linked Binance to the October 2025 market liquidation, citing the platform’s unexplained disruptions. Those reports included frozen accounts, failed orders, and transfer delays during periods of market volatility, as Cryptopolitan reported.

Lewsiphur later posted an alleged cease-and-desist letter, saying the trading platform demanded he delete his claims by a set deadline. Binance later on responded to the rumor, insisting the legal notice was fake, shunning insolvency allegations, and denying responsibility for the 10/10 market crash.

Binance’s former CEO, Changpeng Zhao, has also labeled the accusations “far-fetched,” and no regulator has insinuated there are solvency problems in the platform’s books, much different from the well-documented failure of FTX.

Market blames Binance for slow Bitcoin price performance 

According to data from derivatives market aggregator Coinglass, Bitcoin futures hit an all-time high of $127,240 on October 6, 2025, days before the asset went on freefall. Bitcoin is now changing hands at year-on-year lows of $70,755, a 44% drop in just 170 days. 

The start of “Uptober” was the last distinctly liquidity-rich month, with average stablecoin inflows topping $9.7 billion, including $8.8 billion directed to Binance. Those conditions were against the backdrop of strong capital support that helped push Bitcoin towards a fresh record high.

Whether because of Binance’s scale, its dominance in derivatives trading, or the lack of clarity about exactly what happened, on any given day, social media sees multiple accusations claiming the exchange was the biggest reason October 10 (now known to many as 10/10) occurred.

Binance and CZ have maintained that they are not responsible for the crypto market crash.

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