Trader Fires Back at Binance With Open Letter After ‘10/10 Crash’ Lawsuit
TL;DR
Trader Edison Zhang says Binance sued him after he blamed an Oct. 11 SOL/USDT wick for liquidating his leveraged longs.
He says his liquidation level was $145, the low hit $141, and he received no margin call alerts before his account hit zero.
Zhang says support failed, a Feb. 3 cease-and-desist followed, and Binance insists disputes go to HKIAC or ICC formal arbitration by March 1, 2026.
A crypto trader who posts as @edisonzz says Binance has sued him after he accused the exchange of triggering a sharp SOL/USDT wick that liquidated his leveraged longs on October 11. Zhang’s open letter positions the episode as a systems failure, not a bad trade. Edison Zhang wrote that the move wiped out what he describes as his family’s savings and he shared screenshots of SOL/USDT trades as evidence. He also says he received no SMS or email margin call alerts before his account was liquidated. He says the dispute has escalated into legal action.
— Edisonzzz(Victims of the Binance 1011) (@edisonzz) February 5, 2026
Liquidations, jurisdiction, and arbitration become the battleground
Zhang says the disputed move began with a sudden downward wick on Binance’s SOL/USDT pair that pushed price below his liquidation level. He argues the wick mechanics, not his core view, forced an involuntary exit. He says his liquidation price was $145 while the market low hit $141, triggering automatic closure of his long positions. Zhang wrote that in 2025 he worked in Abu Dhabi and aimed for steady growth, opening a SOL long above $240 on expectations of U.S. ETF approvals within 1 to 2 weeks. He woke near 2:00 AM to chaos alone.
After the liquidation, Zhang says he tried to resolve the issue through customer support but saw rejected tickets, stalled chats, and referrals to official announcements. He portrays the support process as a dead end that hardened the dispute. He explored filing with Abu Dhabi’s Financial Services Regulatory Authority, but says FSRA regulates Binance FZE, not the entity serving global users. In December, he says Binance Global shifted its registered address to ADGM, and his posts soon drew a Feb. 3 cease-and-desist from Al Tamimi & Company. He says firm represents Nest Exchange Limited, Binance.com’s operator.
Zhang says Binance’s representatives cited his support chat records and told him seeking recourse through FSRA would be “illegal,” insisting disputes must go to arbitration. The conflict has shifted from a trading loss narrative to a jurisdiction and process battle. In his letter, he says the exchange pointed him toward proceedings at the Hong Kong International Arbitration Centre or the International Chamber of Commerce. He adds that a wick marks the high and low even if price does not close there. Zhang says support has grown as pressure increases and he keeps posting records online.
Filed under: News - @ February 5, 2026 5:23 pm