The “10/10”: A Still-Open Wound
To understand the current crisis of confidence impacting Binance, we need to go back to October 10, 2025, a date now infamously known as “10/10”. On that day, the market suffered one of the most brutal cascade liquidations in its history, wiping out more than $19 billion in leveraged positions. The fall was dizzying, with Bitcoin plunging 12.5% and triggering a liquidity loss from which the market is still struggling to recover.
Accusations quickly flew toward Binance and its founder, Changpeng “CZ” Zhao. Critics pointed to technical failures on the platform – interface bugs, transfer delays, and failing order books – that allegedly amplified the panic and transformed a correction into a full-blown crash. For part of the community, the verdict is clear: “CZ killed crypto on 10/10”.
Binance, for its part, has consistently denied any major responsibility. The exchange admitted to “minor technical hiccups” in the face of extreme volume, but attributed the main cause to macroeconomic factors and an over-leveraged market. To calm tensions, the platform compensated affected users to the tune of several hundred million dollars, but doubt has become permanently entrenched.
From Crisis of Confidence to Panic: A Sense of Déjà Vu with FTX
This week’s incident has added fuel to the fire. A withdrawal interruption lasting about twenty minutes was enough to trigger panic on social media, painfully recalling the final days of FTX. A viral tweet even claimed that 8.5% of the exchange’s stablecoin reserves had been depleted.
The comparison with FTX’s collapse in November 2022 is striking and concerning. The parallels are numerous: technical problems that sow doubt, crisis communication that struggles to convince, and a charismatic founder who, like Sam Bankman-Fried in his time, accuses competitors of spreading “FUD”.
Respected figures from the ecosystem, who had supported Binance for years, are publicly announcing their departure, stating: “When the smartest people in the room start reducing their exposure, I pay attention”.
Is Binance Really Insolvent and Are Funds Really Fleeing the Ship?
Faced with the panic, Binance is trying to reassure. The platform highlights its Proof-of-Reserves system, which, at the end of 2025, showed that the $162.8 billion in user assets were fully backed. In a strong gesture to restore confidence, the exchange also announced the conversion of its SAFU insurance fund, worth one billion dollars, into Bitcoin.
For now, on-chain data shows that the panic is certainly disproportionate. Indeed, as CryptoQuant indicates, only $600m (0.3% of total assets) have left Binance. This should provide reassurance and temper the accusations.
However, these assurances are not enough to calm all fears. The opacity surrounding the 10/10 incident and recent problems continue to fuel mistrust.
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