Binance says it has never sent a legal warning letter over bankruptcy claims…rebuts forged document

Global crypto exchange Binance has pushed back against a cease-and-desist letter circulating in connection with speculation about the company’s bankruptcy, saying it is a forged document.

According to The Block on the 4th (local time), Binance said the letter tied to bankruptcy claims that recently spread on social media “is not a document sent by Binance,” calling it “a forgery fueled by excessive imagination.”

Earlier, X user Lewsiphur claimed Binance had become insolvent and that this would trigger a market shock more severe than the collapse of FTX. He later posted an image of a document, saying he had received a cease-and-desist letter from Binance demanding the post be deleted.

The image said legal action would be taken if the post was not removed by 5 p.m. the same day, and the post quickly went viral.

Binance’s official customer support account replied directly to the post, saying, “This document was not sent by Binance,” and urging users to “beware of forged documents and false information.”

Despite the stated deadline having passed, the post remains online. In a separate post, the user said he would go live to substantiate his claims.

Insolvency rumors surrounding Binance have been circulating again, overlapping with a sharp market sell-off that occurred in October last year. At the time, some users said they experienced account freezes, failed orders, and delays in deposits and withdrawals, but Binance said the moves were driven by the macro backdrop and volatility stemming from excessive leverage, and were unrelated to any issue with its systems.

Founder Changpeng Zhao has also dismissed the bankruptcy talk, calling it “detached from reality” during a public Q&A.

Amid the controversy, some communities are encouraging users to withdraw assets to personal wallets. In response, Binance co-founder Yi He said that while some users ran a withdrawal campaign, “the amount of assets held at Binance addresses actually increased even after the campaign,” adding that “regular withdrawals can be an effective stress test for any exchange.”