Binance Faces Market Manipulation Allegations Following Massive BTC and ETH Sell-Off

Whale movements trigger regulatory scrutiny as crypto giant faces fresh accusations.

THE FALLOUT

Trading floors buzzed with speculation after unusual blockchain activity sparked manipulation concerns. The sales—large enough to ripple across derivatives markets—came during typically thin trading hours.

REGULATORY ECHOES

Watchdogs globally are examining the transactions, with some drawing parallels to traditional finance's 'too big to fail' dilemmas. The timing raises eyebrows—just as institutional adoption hits new milestones.

MARKET REALITIES

While decentralization promises purity, concentrated holdings continue challenging crypto's egalitarian narrative. Another reminder that when whales swim, smaller fish feel the waves—and regulators reach for their nets.

Stablecoin inflows raise eyebrows

Additionally, on-chain data adds more questions. Analyst Rekt Fencer noted, “Binance keeps piling up huge amounts of stablecoins just as the market crashed. Coincidence… or did they know something?”

🚨 BREAKING:

BINANCE KEEPS ACCUMULATING A TON OF STABLECOINS

JUST AS THE MARKET GOT WIPED OUT

COINCIDENCE… OR DID THEY KNOW SOMETHING? pic.twitter.com/wobW3rbmjR

According to CryptoQuant, Binance recorded $2.1 billion in stablecoin inflows on September 17, just before the Federal Reserve announced its first rate cut since December 2024. Coinbase saw $1.6 billion, while other platforms recorded $3 billion combined. Hence, market observers believe Binance could be stockpiling “dry powder” for the next big rally.

Ethereum under pressure

Besides Bitcoin, ethereum (ETH) markets also appear affected. Analyst Ted claimed, “I hate to say it, but Binance is manipulating $ETH and the entire altcoin market.” He argued that Ethereum was preparing to break $4,000 with strong institutional demand. 

I hate to say it, but Binance is manipulating $ETH and the entire altcoin market.

Ethereum is strong, pushing to break $4,000 with institutions and whales buying aggressively.

Yet… 👇🏻

As I pointed out earlier, they’re dumping millions of ETH by moving it to multiple market… pic.twitter.com/HjsPKTQ4od

However, he accused Binance of dumping millions of ETH by routing funds through market Maker accounts. Consequently, suspicions also grew that customer funds may be involved, intensifying community concerns.

The crypto community is currently abuzz with such actions from Binance, with questions being raised about fairness, transparency, and trust in the crypto market.

Also Read: AIXBT Warns of Potential Rugpull on ASTER Rather Than Binance Listing