Trader’s Explosive Open Letter Surfaces After Binance Lawsuit Over ’10/10’ Crash Allegations

A trader's open letter detonates in crypto circles, lobbing fresh accusations at Binance following a major lawsuit tied to the infamous '10/10' market crash. The document—part manifesto, part evidence file—claims to expose systemic flaws, not just a single bad trade.

The Anatomy of an Allegation

The letter doesn't just rehash the crash; it reconstructs it. It points to order book anomalies and liquidity blackouts that, the author argues, no retail trader could engineer alone. The core claim? The '10/10' event wasn't an accident—it was a symptom.

Binance's Legal Quagmire Deepens

This public missive lands as Binance navigates a complex legal battlefield. Regulators are already scrutinizing the exchange's risk controls. Now, this letter provides a narrative—and potential ammunition—for plaintiffs arguing the platform failed its duty of care. It's a PR nightmare wrapped in a legal threat.

Trust, Once Spent, Is Hard to Refill

The real damage here is to credibility. For an industry built on decentralized trust, centralized exchanges live and die by their reputation. Every allegation of manipulated liquidations or unfair advantage chips away at that foundation. It makes every trader wonder if the game is rigged—a classic finance trope, just with digital assets.

The fallout is clear: when the music stops, everyone looks for someone to blame. This letter ensures the spotlight stays firmly on the house, not just the players who lost their chips.

Binance leverage market price wick caused liquidations, user claims

A price wick, also called a shadow or tail, is the thin vertical line on a candlestick chart that represents the highest and lowest prices reached during a trading period, even if the price did not close there. 

The upper wick shows the highest level reached before an asset’s price pulls back and selling pressures intensify. On the flipside, the lower wick shows the lowest level reached before price rebounds and buying interest jumps in.

Zhang says the disputed movement began from a downward wick in SOL trading on Binance. He states his liquidation price was $145, while the market low at the time was $141. According to his account, the MOVE pushed the price below his liquidation threshold, commencing an automatic closure of his positions.

“In 2025, I was working in Abu Dhabi, UAE. My strategy for the year was to be a steady, conservative player, aiming for consistent growth. Betting on the positive outlook for the U.S. ETFs, I opened a long position on SOL at over $240, expecting approval within the next 1–2 weeks,” he narrated.

On the morning of October 11, at nearly 2:00 AM, I woke up with a jolt. I checked the price—it was around $180. I had received absolutely no SMS or email notifications regarding a margin call. But, feeling uneasy, I opened the app anyway, only to find that everything had been wiped out. My account was at zero.

Zhang.

After the incident, Zhang says he attempted to resolve the matter through Binance customer support, but the conversations went nowhere, support tickets were rejected, and he was repeatedly directed to official announcements. 

Zhang initially considered seeking recourse through the Financial Services Regulatory Authority, or FSRA, in Abu Dhabi. He says he later learned FSRA regulates Binance FZE, a different legal entity from the one serving global users, so he had to abandon that path.

In December, the bereft trader discovered that Binance Global had changed its registered address to the Abu Dhabi Global Market (ADGM). Because ADGM falls under the same jurisdiction as his workplace and is physically close, he believed it could be his chance at getting compensation.

According to Zhang, he made several public posts about his ADGM pursuit, which prompted a cease-and-desist notice dated February 3 from Al Tamimi & Company, a law firm he claimed represents Binance. Per the email shared in the X article, the firm is the legal counsel to Nest Exchange Limited, the entity responsible for Binance[dot]com.

Zhang says Binance’s representatives cited his customer service chat records and insisted that seeking recourse through FSRA WOULD be “illegal.” He says they insisted disputes must go through arbitration at the Hong Kong International Arbitration Centre or the International Chamber of Commerce. 

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