In a dramatic turn of events, Binance, a key player in the global cryptocurrency exchange landscape, has instituted legal proceedings against Edison Zhang, popularly recognized on social media platforms as @edisonzz. This action stems from allegations leveled by Zhang regarding alleged market manipulation linked to an abrupt fluctuation in the SOL/USDT pair observed in October 2025. The incident, according to Zhang, triggered the automatic liquidation of his leveraged investments, leading Binance to resort to formal legal measures.
Background of the Market Activity and Claims
Since its establishment in 2017, Binance has emerged as a vital platform for millions globally engaged in cryptocurrency transactions. On the other side, Edison Zhang, a proactive cryptocurrency enthusiast, chose to voice his grievances publicly by penning an open letter. Within this document, he included visual evidence and descriptions of the standout price fluctuation, aiming to highlight his accusations.
Zhang detailed that an unexpected price spike or “wick” transpired in the SOL/USDT trading pair on October 11. The spike reportedly liquidated his positions at a price of $145, contrasting with the prevailing market low of $141, which ignited his allegations directed at Binance.
Impact of the Price Spike and Response
These rapid and volatile price oscillations, referred to as “wicks” within trading circles, can inflict substantial losses. Zhang has charged Binance with a failure to keep clients adequately informed throughout the incident. He asserts that the situation culminated in adverse financial outcomes for him.
“Everything was erased. My account was zeroed. A decade’s effort vanished in an instant.”
Zhang
Following the debacle, Zhang endeavored to find resolution through Binance’s customer service channels but encountered consistent redirection to formal announcements without tangible results. He contemplated legal recourse through the Abu Dhabi Financial Services Regulatory Authority but withdrew after discovering its limitations regarding global Binance users.
Developments in Legal and Procedural Approaches?
Moving forward to December, Zhang recognized that Binance Global had relocated its registered base to the Abu Dhabi Global Market (ADGM), hinting at potentially new legal opportunities. Nevertheless, he claims to have received a cautionary notice from Al Tamimi & Company, identified as Binance’s legal representatives, dating back to February 3.
The communication outlined a preference by Binance for dispute settlement through either the Hong Kong International Arbitration Center or the International Chamber of Commerce. Zhang indicated concern that such prerequisites impeded his quest for judicial redress.
“No SMS or email alert arrived. Yet, feeling uneasy and checking the app, I saw everything was erased.”
Zhang
With Zhang’s grievances now public, Binance’s attempt to form a legal response culminated in sending him a formal caution. Zhang further alleged that his interactions with customer service representatives were being utilized as evidence against him.
