Yi He, a key figure in Binance‘s executive team, recently addressed claims regarding the platform’s financial health on the X platform. As one of the leading figures in the cryptocurrency sector, Binance operates in multiple regions and commands a vast user base, making it a well-known cryptocurrency trading platform globally.
Withdrawal Campaign Reduces Reserves
Yi He highlighted that a withdrawal campaign initiated by some community members led to an increase in assets transferred to Binance addresses. However, on-chain data revealed a noticeable surge in Bitcoin activity outside of the platform over recent weeks, resulting in substantial withdrawals.
Data from CryptoQuant, a blockchain analytics platform, indicated fluctuations in Binance’s reserves last week. Significant inflows were noted between January 29 and 31, yet there was a marked exit of approximately 5,800 BTC at the week’s start, representing the largest negative net flow for that period.
Although the number of assets in Binance’s addresses increased after the community-led campaign, Yi He viewed the regular withdrawals across all platforms as an effective stress test.
Despite ongoing reserve fluctuations, there was another inflow of 2,700 BTC on February 4. Nevertheless, due to market volatility, the total reserve value continued to decrease. Bitcoin reserves, which were in the range of $55-56 billion a week earlier, declined by 16% to $46.3 billion, accompanied by a 19% drop in Bitcoin’s price.
Market Rumors and Binance’s Response
Yi He advised users to carefully check recipient addresses during withdrawals and suggested considering hardware wallets for those who lack trust in Binance to avoid potential errors and fund losses.
On social media, some users accused Binance of being responsible for the $20 billion market liquidation and overall decline seen last October. Allegations involved technical glitches, freezing of accounts, and transfer delays contributing to the downturn.
Binance refuted these claims and denied the accuracy of reports stating they had received a legal warning. Former CEO Changpeng Zhao dismissed the accusations against him as unfounded, and no regulatory body has announced a bankruptcy risk for Binance to date.
Criticism of Market Performance
Some analysts suggest Binance’s high trading volume might have influenced the recent drop in Bitcoin prices. Following the rapid price declines in October 2025, the platform’s technical capabilities and transparency became subjects of debate on social media.
Binance continues to openly reject allegations that it negatively impacted the market.
