Is Binance Shutting Down? Here’s The Full Story Around the FUD

Binance came very close to a full bank run after rumors of insufficient reserves circulated on Feb 2, 2026. It had temporarily paused withdrawals on the same day, which gave strong support to the rumors of insufficient reserves, a dire situation faced by FTX mere days before its bankruptcy.

Amid withdrawals post the October 10 crash and subsequent market sell-off, it was alleged that the exchange might not have sufficient reserves to cover its user deposits.

Binance also sent a cease-and-desist notice to the X user Lewsiphur regarding his claims about the exchange’s insolvency.