Binance, one of the leading cryptocurrency exchanges, has initiated legal proceedings against Edison Zhang, known on social media as @edisonzz. This development follows Zhang’s accusations of market manipulation during a sudden price shift in the SOL/USDT pair in October 2025. Zhang claims this incident led to the automatic liquidation of his leveraged positions, prompting Binance to respond with official legal steps.
Foundations of the Allegations and Investor Statements
Established in 2017, Binance serves millions of users worldwide, making it a major player in the crypto market. Edison Zhang is an active cryptocurrency investor and shared his concerns with the public through an open letter. He included screenshots depicting the controversial price movement, hoping to garner attention towards his allegations.
Zhang explained that a sudden price “wick” emerged in the SOL/USDT pair on October 11, causing the liquidation of his positions at the $145 level, while the market’s low was still at $141. This automatic closure of transactions sparked his allegations against Binance.
Pair Movement and Events in the Process
Such sudden price changes, known as “wicks” in crypto markets, can sometimes lead to significant losses. Zhang accused Binance of failing to adequately inform clients during this incident. He maintained that the situation resulted in undesired financial consequences for him.
“Everything was erased. My account was zeroed. A decade’s effort vanished in an instant.”
Zhang
Following this event, Zhang attempted to resolve the issue through Binance’s customer support but found his inquiries unresolved as he was repeatedly directed to official announcements. He also contemplated seeking justice through the Abu Dhabi Financial Services Regulatory Authority but abandoned this route upon learning it did not cover global Binance users.
Legal Proceedings and Binance’s Response
In December, Zhang noted Binance Global’s registered address had moved to the Abu Dhabi Global Market (ADGM) area, potentially opening new legal avenues for him. However, he claims to have received a warning letter from Al Tamimi & Company, known as Binance’s legal representative, dated February 3.
This letter indicated that Binance preferred resolving legal disputes through either the Hong Kong International Arbitration Center or the International Chamber of Commerce. Zhang voiced concerns that this requirement hindered his efforts to seek legal recourse.
“No SMS or email alert arrived. Yet, feeling uneasy and checking the app, I saw everything was erased.”
Zhang
Zhang shared that after going public with his allegations, Binance sent him a formal warning to resolve the dispute. He also claimed that communications with customer services were being used against him as evidence.
