As markets reeled from President Trump’s tariff escalation, Binance — the world’s largest crypto exchange — is facing widespread outrage after users reported frozen accounts, failed stop-loss orders, and flash crashes that sent multiple coins to near zero.
Social media erupted late Friday after traders claimed that Binance’s systems locked up during the heaviest liquidation wave of the year.
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Coins such as Enjin (ENJ) and Cosmos (ATOM) briefly showed prices crashing to $0.0000 and $0.001, respectively, before rebounding.
Some traders reported being unable to close or hedge positions as losses spiraled.
Binance acknowledged the disruption, citing “heavy market activity” that caused system delays and display issues, but assured users that “funds are SAFU.”
However, users accused the exchange of market manipulation, claiming the freeze allowed Binance to profit during what some described as the largest liquidation event in crypto history.
Several high-profile traders alleged that Binance disabled limit and stop-loss functions at critical moments. Others claimed that both long and short positions were liquidated while order books froze.
Tweets described widespread system overloads and users being unable to execute trades for minutes at a time.
Notably, Binance wasn’t the only exchange to experience such outage and freeze transactions. Coinbase and Robinhood reported similar issues.
However, this is not the first time Binance has faced such accusations. Some traders compared it to a similar incident earlier this year, when sudden service halts coincided with large-scale liquidations.
Critics are now calling for regulators to investigate the exchange’s internal controls, while retail traders are renewing calls to move funds off centralized exchanges.
Binance outage likely amplified the crash triggered by Trump’s 100% China tariff threat, which had already wiped $200 billion from the global crypto market earlier in the day.
The combination of geopolitical panic and technical failures turned an already severe sell-off into a historic meltdown.
For now, Binance says its systems are back online, but users continue to report delayed withdrawals and frozen P2P transactions. The company has not announced any compensation for traders affected by the flash crashes.
