Binance Slams $20B Outflow Claims, Cites Inflows and FUD Campaigns

TLDR

• Binance rejected claims that it faced over $20 billion in outflows last week.
• Yi He criticized influencers for spreading misinformation against Binance.
• El Jaboom shared DeFiLlama data showing Binance gained $4 billion in 24 hours.
• CoinGlass data was questioned for lacking verification of wallet addresses.
• Binance faced separate allegations about its token listing practices.

Binance pushed back against recent claims suggesting the exchange suffered over $20 billion in outflows within a week. The company challenged the widely shared CoinGlass data on social media earlier this week. Binance leaders and supporters presented counter-data from DeFiLlama, which shows strong inflows.

Yi He Responds to Allegations and FUD

Yi He, Binance co-founder and Chief Customer Service Officer, criticized crypto influencers spreading fear-driven narratives against the exchange. In a pointed statement, she wrote, “If you are crypto KOL and someone offers you less than $20K to publish FUD about Binance, consider it an insult.”

She made the statement while reposting data from crypto investor El Jaboom, which showed that Binance saw over $4 billion in inflows in 24 hours. He cited DeFiLlama figures, which dispute the $21.75 billion outflow shown by CoinGlass earlier. Moreover, Binance supporters amplified the claim that CoinGlass data lacked reliability due to its public-source basis.

CoinGlass’s website includes a disclaimer clarifying that it does not verify wallet holdings or data accuracy. Nevertheless, the CoinGlass post received widespread attention, with hundreds of people sharing and liking it across social platforms. This caused a wave of speculation about Binance’s financial health.

Disputed Listing Allegations Escalate Tensions

Binance also responded to separate accusations this week regarding its token listing practices. Limitless Labs CEO CJ Hetherington alleged Binance requested 8% of a token’s supply and additional deposits. Binance rejected the claim and threatened legal action over the “false and defamatory” statements.

Following backlash, Binance admitted its initial customer support post on the matter was poorly worded. The exchange stated, “While we stand by our position, the way we communicated was excessive and we sincerely apologize.” Despite the controversy, Binance maintained that it does not profit from listing tokens.

Coinbase Ventures and the Base Ecosystem Fund back limitless Labs. This connection heightened attention around the claims. Yet, Binance appeared firm in its defense and sought to restore confidence through more transparent communication.

Binance Moves to Restore User Confidence

In a goodwill gesture, Binance announced a $400 million initiative to help users affected by Friday’s flash crash. This move came shortly after it faced criticism over its tone in responding to allegations. Binance stated that the refunds would partially compensate users for losses incurred from the sudden market dip.

The exchange continues to maintain that its platform remains secure and liquid despite rumors. DeFiLlama data support that Binance had net inflows of around $900 million over the past week. The exchange emphasized transparency while dismissing misleading statistics.

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