As markets reacted to President Trump’s tariff escalation, Binance — the world’s leading crypto exchange — is experiencing significant backlash after users reported locked accounts, failed stop-loss orders, and flash crashes that drove multiple coins to nearly zero.
Social media exploded late Friday as traders claimed Binance’s systems froze during the most substantial liquidation wave of the year.
Sponsored
Sponsored
Multiple Altcoins Crashed To Zero On Binance
Coins like Enjin (ENJ) and Cosmos (ATOM) briefly hit prices as low as $0.0000 and $0.001, respectively, before recovering.
Some traders reported being unable to close or hedge positions amid escalating losses.
Binance acknowledged the disruption, attributing it to “heavy market activity” that led to system delays and display issues, but assured users that “funds are SAFU.”
Nevertheless, users accused the exchange of market manipulation, alleging that the freeze allowed Binance to profit during what some termed the largest liquidation event in crypto history.
Sponsored
Sponsored
A number of high-profile traders claimed that Binance disabled limit and stop-loss functions during critical moments. Others noted that both long and short positions were liquidated while order books froze.
Tweets indicated widespread system overloads and users being unable to execute trades for extended periods.
Importantly, Binance wasn’t the sole exchange to face such outages; Coinbase and Robinhood reported akin issues.
This isn’t the first instance of Binance facing such allegations. Some traders compared it to a similar incident earlier this year, when abrupt service halts coincided with significant liquidations.
Critics are now urging regulators to look into the exchange’s internal controls, while retail traders are ramping up calls to withdraw funds from centralized exchanges.
Binance’s outage likely intensified the crash initiated by Trump’s 100% tariff threat on China, which had already erased $200 billion from the global crypto market earlier that day.
The mix of geopolitical anxiety and technical failures transformed an already serious sell-off into a historic collapse.
Currently, Binance states its systems are operational again, yet users report continued delays in withdrawals and frozen P2P transactions. The company has not disclosed any compensation for traders affected by the flash crashes.
