After Binance was accused of contributing to the largest crypto crash in history, an increasing number of clients began leaving the platform. According to a post by CoinGlass on October 15, over the past seven days, outflows from the exchange reached $21.75 billion. The post quickly went viral on X (formerly Twitter). However, recent data now shows a modest recovery of around $300 million in net inflows.

Binance co-founder and Chief Customer Service Officer Yi He sharply criticized those spreading the report, stating: “If you’re a crypto KOL and someone offers you less than $20,000 to spread FUD about Binance — take it as an insult.”

The exchange, led by Changpeng “CZ” Zhao, has once again found itself under fire from the crypto community. The USDe stablecoin depeg on Binance was significantly more severe than on other platforms, which amplified the scale of liquidations. This reignited long-standing criticism over Binance’s token listing standards and alleged questionable negotiation practices with new projects.

CJ Hetherington, CEO of Limitless Labs, claimed that Binance had requested about 8% of Limitless’ total token supply, along with additional cash and token-based guarantees, as part of a potential listing deal.

Binance’s threat to take legal action against Hetherington for allegedly “false and defamatory” comments backfired, sparking even greater backlash within the industry.

Following the controversy, Binance deleted the original post and issued a public apology: “The community may have noticed that we deleted our previous post in response to discussions about our listing process,” the exchange wrote on Wednesday. “While we stand by our position, the tone of our communication was excessive. We sincerely apologize to our users, partners, and the broader industry.”

As a gesture of goodwill, Binance is now compensating users who suffered losses during last Friday’s flash crash, distributing hundreds of millions of dollars. However, most of the crypto community views this as disproportionate. One X user commented: “It’s like hitting people with a car and then handing them a lollipop as compensation.”

Despite the controversy, the BNB token has remained resilient and largely unaffected by Binance’s reputational challenges. Following its brief price surge, several analysts also expect a potential rally in the Mantle token issued by Bybit.

Meanwhile, Coinbase announced that it plans to list BNB as well. “Coinbase is adding BNB to its roadmap amid growing scrutiny of centralized exchanges’ listing practices,” the company noted.