Binance Co-Founder Yi He Dismisses Withdrawal FUD as Powerful Stress Test for Crypto Giant

Fear, uncertainty, and doubt—or FUD, as the crypto crowd calls it—just got a reality check from Binance's leadership.

Yi He, the exchange's co-founder, recently addressed swirling concerns about user withdrawals. She didn't just calm nerves; she flipped the script. What looked like a crisis to some was framed as a critical, even beneficial, stress test for the platform's resilience.

The Real Test: Liquidity Under Pressure

For any financial institution, a sudden surge in withdrawal requests is the ultimate trial by fire. It tests backend systems, liquidity pools, and operational integrity all at once. According to Yi He, Binance didn't just survive this pressure—it validated its infrastructure. The episode proved the exchange's capacity to handle peak demand without hiccups, a silent but powerful rebuttal to skeptics.

Beyond the Panic: A Sign of Maturity

The crypto industry has long been haunted by the ghosts of exchanges past—platforms that collapsed when users actually tried to take their money out. This latest wave of FUD, and Binance's response, highlights a sector growing up. The focus is shifting from hype to hard metrics: proof of reserves, audit trails, and technical robustness. Passing an unplanned stress test speaks louder than any marketing claim.

A Cynical Take from Finance's Old Guard

Of course, traditional finance veterans might offer a wry smile. They've seen this movie before—where 'stress tests' are sometimes just rebranded crises, and resilience is declared only until the next, bigger wave hits. In their world, stability isn't announced; it's demonstrated quietly over decades, not in a single viral tweet storm.

For now, Binance's narrative is one of strength. Yi He's message is clear: bring on the withdrawals. Each one doesn't weaken the fortress; it just proves how thick the walls really are. The market, as always, will decide if that confidence is well-placed or just another bold claim in an industry full of them.

Binance exchange reserves plummet 16% in the past week

After witnessing strong inflows on January 29 and 31, Binance recorded one of the largest daily outflows of the period last Monday, when the king coin was trading at around $78,000. That outflow reached 5,800 BTC, the deepest negative netflow in the weekly window. 

Yet, the days after the slow start to the business week saw renewed inflows, including a large positive netflow of 2,700 BTC on February 4. At the same time, Binance exchange reserve declined due to falling market prices. 

Bitcoin reserves were around $55–56 billion about a week ago, but have now slipped by 16% to about $46.3 billion at the time of this reporting. The asset’s own price also fell by 19% during the same period, likely contributing to the reduced dollar value of Binance’s reserves. 

Yi He advised users moving funds off the exchange to carefully verify the recipient addresses before completing their withdrawal requests, and recommended a cold wallet for those who lacked confidence in Binance. 

I hope everyone carefully checks the addresses during the withdrawal process to minimize errors, as there is no way to recover funds on the blockchain. If software wallets like Binance Wallet or Trust Wallet do not meet your needs, you might also try hardware wallets such as OneKey HQ

Yi He

On Wednesday, X user Lewsiphur claimed Binance was responsible for last October’s $20 billion crypto market liquidation wipeout, adding that it is insolvent and could cause a market fallout worse than FTX. 

The rumors arose after several traders on Crypto Twitter linked Binance to the October 2025 market liquidation, citing the platform’s unexplained disruptions. Those reports included frozen accounts, failed orders, and transfer delays during periods of market volatility, as Cryptopolitan reported.

Lewsiphur later posted an alleged cease-and-desist letter, saying the trading platform demanded he delete his claims by a set deadline. Binance later on responded to the rumor, insisting the legal notice was fake, shunning insolvency allegations, and denying responsibility for the 10/10 market crash.

Binance’s former CEO, Changpeng Zhao, has also labeled the accusations “far-fetched,” and no regulator has insinuated there are solvency problems in the platform’s books, much different from the well-documented failure of FTX.

Market blames Binance for slow Bitcoin price performance 

According to data from derivatives market aggregator Coinglass, Bitcoin futures hit an all-time high of $127,240 on October 6, 2025, days before the asset went on freefall. Bitcoin is now changing hands at year-on-year lows of $70,755, a 44% drop in just 170 days. 

The start of “Uptober” was the last distinctly liquidity-rich month, with average stablecoin inflows topping $9.7 billion, including $8.8 billion directed to Binance. Those conditions were against the backdrop of strong capital support that helped push bitcoin towards a fresh record high.

Whether because of Binance’s scale, its dominance in derivatives trading, or the lack of clarity about exactly what happened, on any given day, social media sees multiple accusations claiming the exchange was the biggest reason October 10 (now known to many as 10/10) occurred.

Binance and CZ have maintained that they are not responsible for the crypto market crash.

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