Cryptocurrency exchange Binance has released an official statement regarding "market maker disclosure" allegations that have been trending in the community in recent days. The company stated that, as a result of an investigation, the allegations in question were made by an independent third-party trader and that this person is not an official market maker.
According to the statement, the trader's investment firm also confirmed that the individual was not authorized to speak on their behalf. The firm terminated its relationship with the relevant external trading team as of October 13, 2025, and withdrew its compensation claim against Binance. The trader was also asked to delete his social media posts and refrain from making statements on behalf of the firm.
Binance argued in its technical explanation regarding the incident that Reduce Only orders did not trigger the protection mechanism in the system, but these orders still passed position and price verification.
The incident came to the forefront during the crypto market flash crash on October 11th when a trader claimed that Reduce Only orders on the Binance platform were returning a "503 error code" for 106 minutes, preventing them from closing their positions. The posts sparked widespread social media buzz, but the trader in question deleted the posts on October 22nd, admitting there were no errors after reviewing the logs with Binance and the investment firm.
Binance stated in a statement that false and misleading claims have damaged the company's reputation and that it will take legal action if necessary. The company also urged users to be vigilant against market volatility and prioritize risk management.