Binance Under Scrutiny as TRON Founder Faces New Market Manipulation Allegations
In a significant development shaking the cryptocurrency sector, TRON founder Justin Sun is confronting fresh allegations of market manipulation involving TRX trading on the Binance exchange. These claims, brought forward by former insider Zeng Ying, accuse Sun of orchestrating coordinated price manipulation and identity fraud. The allegations resurface against a backdrop of unresolved legal challenges for Sun, including past SEC charges for wash trading and unregistered securities offerings. Notably, the SEC paused its investigation into these matters in February 2025—a timing that has drawn attention due to its coincidence with a reported increase in Sun's political donations. This new controversy places a renewed spotlight on the regulatory environment surrounding major exchanges like Binance and the conduct of high-profile figures within the digital asset space, underscoring ongoing concerns about market integrity and transparency in the rapidly evolving crypto finance landscape.
TRON Founder Justin Sun Faces New Allegations of Market Manipulation
Former insider Zeng Ying has leveled explosive claims against TRON founder Justin Sun, alleging identity fraud and coordinated TRX price manipulation on Binance. The accusations resurface as Sun's past SEC charges for wash trading and unregistered securities offerings remain unresolved since the agency paused its investigation in February 2025—a decision coinciding with Sun's increased political donations.
Zeng claims possession of internal tron documents showing Sun allegedly used employee credentials to operate multiple Binance accounts for artificial price inflation. 'This isn't just insider trading—it's industrial-scale market engineering,' she stated, comparing the evidence to 'the Epstein files of crypto.' TRX dipped 1.07% to $0.2836 amid the claims, underperforming its 90-day trend.
The allegations arrive as the SEC weighs renewed scrutiny of Sun's activities. Market analysts note TRX's decline aligns with broader crypto weakness (-2.56%), though the timing raises questions. 'When fraud claims surface during market downturns, they amplify sell pressure,' said Decentral Park Capital's Larry Cermak.
Binance Executes $100M Bitcoin SAFU Fund Conversion Amid Market Turbulence
Binance has initiated its $1 billion SAFU fund conversion with a $100 million bitcoin purchase, acquiring 1,350 BTC at $77,873 during a market downturn. The transaction, executed on February 2, moved funds from 22 Binance wallets to a dedicated SAFU address with minimal network fees of 5.017 satoshis per byte.
The MOVE follows intense community scrutiny after October's $19 billion liquidation event, with Binance pledging to complete the full conversion within 30 days. Bitcoin's plunge below $80,000 over the weekend triggered $2.5 billion in liquidations, leaving spot ETF investors underwater with average entry prices around $87,830 versus current $75,000 levels.
Meanwhile, industry tensions Flare as OKX founder Star Xu reignited debates about the October crash, suggesting targeted actions against Binance. The exchange's transparent wallet movements—visible via blockchain explorers—show 1,315 BTC now secured in the SAFU reserve.
Investors Shift Focus from BNB to Low-Cap Altcoins Amid Resistance at $900
Binance Coin's struggle to breach the $900 resistance level has prompted investors to seek growth opportunities in smaller, undervalued cryptocurrencies. The asset, currently trading around $840 with a $105 billion market cap, faces stiff selling pressure between $800 and $830 after failing to retest its all-time highs.
Market dynamics in early Q1 2026 show capital rotating from large-cap stalwarts to emerging tokens with higher growth potential. Analysts note BNB WOULD require significant fresh inflows to overcome its $900-$1,000 resistance zone—a challenging proposition given current valuations.
The search for 500% upside opportunities has intensified among traders, with particular interest in developmental-stage projects. This capital rotation reflects a broader market trend where liquidity chases asymmetric returns beyond blue-chip cryptocurrencies.
Crypto Exchanges’ Stock Plunges 60% as Trading Volumes Vanish – Is the Crash Over or Just Beginning?
Crypto exchange stocks have plummeted 40-60% since October, mirroring a dramatic collapse in spot trading volumes. The downturn has erased most of the historic gains achieved earlier in 2025, leaving investors questioning whether the market has bottomed or faces further declines.
Centralized exchange volumes peaked at $2.3 trillion in October 2025 before crashing nearly 90% to $120-150 billion by January 2026. Binance, which commanded over 40% of October's volume with $1 trillion in trades, saw its activity shrink to $70-80 billion—a stark indicator of the sector-wide contraction.
Market share data reveals no winners in this slump. Even Binance's dominance slipped to 38.3% in December as monthly volumes fell another 40%. The evaporation of liquidity across all major platforms suggests structural challenges beyond typical crypto volatility.
