1011 This incident is something Binance doesn't want to hide from

Online accusations that Binance manipulated the market or caused system failures leading to user liquidations have appeared sporadically since its founding in 2017. First of all: Binance did not manipulate the market!!
Since Binance was established, it has served hundreds of millions of users. There is an incident called “1011,” which has been difficult for Binance to defend against. Whether you believe it or not is your right; if you want to criticize, go ahead.
Regarding the 1011 incident, Binance believes it has gone beyond the “market manipulation” accusation — many influencers and advocacy groups define it this way. But I want to say: which 250 leverage trader would cause their platform’s asset transfer subsystem to malfunction for 33 minutes, with API issues and price deviations at the same time? Their own users also lost money, their market makers also suffered losses, some market makers lost 50% or even went bankrupt. It’s more like the original song “Li Bai” being sung by a different singer — the original tune isn’t “copied,” it’s market volatility itself.
About the 33-minute failure:
At UTC 21:18–21:51, during a market-wide sell-off, Binance’s asset transfer subsystem experienced performance degradation for about 33 minutes, affecting some users transferring funds between spot, savings, and futures accounts. A few users saw their balances display as “0,” which was a frontend rollback display issue, not an asset loss. Binance’s matching, risk control, and clearing systems continued to operate normally.
This is not Binance hiding. The failure did happen, and Binance admits it.
Regarding K-line modifications:
Some users accused Binance of changing the historical lows of tokens like $ATOM , $IOTX , etc. — for example, changing ATOM from $0.001 to $1.54, IOTA from $0 to $0.0764. To clarify: this was a display issue, not data tampering. During extreme market conditions that day, some tokens indeed had sporadic trades at very low prices in the spot market, and the frontend displayed these extremely low values. Later, the prices were corrected to reasonable ranges, but this was interpreted externally as “modifying historical K-lines.”
This operation — how to say — was indeed stupid. Under community pressure, Binance later restored the missing 3-day data, but it was already criticized. Binance admits this operation was problematic.
Regarding the 283 million compensation:
After the 1011 event, He Yi posted two apology tweets on October 12, promising to “verify and compensate for losses caused by Binance,” launching the “Same Boat Plan,” and announcing a $283 million fund to compensate affected users. CEO Richard Teng @_RichardTeng also publicly apologized.
But $283 million is definitely not enough. Users are right: the compensation only covers users who had their collateral liquidated during the disconnection of $USDe , $WBETH , and $BNSOL assets. Users who lost money due to system lag, stop-loss failures, or API anomalies leading to liquidation were excluded.
There’s also the issue with customer service. Users submitted screenshots of stop-loss orders and fault recordings, but customer service replied, “Liquidation is a normal market risk, accept your losses.” This is not Binance’s standard response. Binance apologizes to every user who encountered this — you shouldn’t be treated this way.
Regarding taking things out of context and conspiracy theories:
Honestly, many people criticizing Binance do so based on the preset assumption that “Binance is the culprit.” Cathie Wood @CathieDWood said Binance’s software failure triggered the 1011 deleveraging event, and CZ and He Yi responded with “organized attack.” He Yi said: “The whales trading on Binance understand better what happened during the tide, and have more say on the facts.”
But this was interpreted as “Binance shifting blame onto whales.” Binance never said that.
What actually happened? High leverage positions + macro shocks (Trump tariffs news) + market maker risk control leading to liquidity withdrawal + Ethereum network congestion — all combined to create this storm. Binance’s system issues were just amplifying factors, not the sole cause.
However, it’s understandable that users don’t trust this — Binance’s explanations weren’t clear enough, the report was released too late (a detailed report only came out on January 31, 2026), and the compensation scope was too narrow.
About the user who was sued:
There’s a user on X named Edison Zhang @edisonzz, who publicly accused Binance of manipulating SOL/USDT prices, causing him to be liquidated, losing ten years of effort. Later, we sued him. Many people criticized Binance for “bullying retail investors.”
But to clarify: the lawsuit was for defamation and malicious spreading of false information, not because he lost money. Any platform has the right to defend its reputation against false accusations. As for his liquidation — if he’s willing to go through formal channels to appeal and provide evidence, Binance is willing to re-investigate.
Summary:
1. Binance did not manipulate the market!! Which 250 leverage trader would cause system lag, stop-loss failures, and API anomalies on their own platform, causing losses for themselves and their users?
2. The system failures, lag, and API issues on 1011 — these did happen. Binance’s technical team was insufficiently prepared for extreme market conditions, that’s a fact.
3. The $283 million compensation scope was too narrow, excluding many users. Customer service’s evasiveness and passive attitude — that’s Binance’s fault.
4. The report was released too late. Users waited from October 2025 until the end of January 2026 to see the detailed report. During this period, many felt Binance was “playing dead.”
Releasing this statement now, I feel much more at ease. This issue has been stuck for too long — from 1011 until now, whether it’s dealt with or not, it’s been a painful experience.
Binance has already asked colleagues to review all cases of abnormal liquidations caused by system failures, expand the compensation scope, establish clear payout standards, and publicly disclose them. At the same time, Binance will set up an independent user appeal and review mechanism — this is something Binance must do, and it’s what Binance should do.
There will definitely be results. Those who want to criticize can start now — Binance truly deserves it. And thank you all for your strict supervision, helping Binance settle a long-standing concern.
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A few additional remarks:
1. Since Binance @binance was founded in 2017, its communication has not been very “official” — Binance doesn’t like PR-speak, Binance prefers to tell the truth. Binance is not some messiah or a superhuman; do not idolize CZ or He Yi. Binance has made many mistakes, and 1011 was the biggest.
2. Some say Binance is “both referee and player,” and others say “pumping $BNB , spreading BSC ecosystem tokens” to cover up the truth. To clarify: BNB’s price movement depends on market supply and demand, not Binance’s arbitrary manipulation. Pumping and spreading tokens — if Binance really wanted to “cover up,” it would do so in smarter ways, not with obvious actions that can be easily seen through.
3. Don’t bother those advocacy