LONDON (Azat TV) – Major cryptocurrency exchanges Binance and Bithumb have recently been at the center of significant market events, with Binance addressing renewed insolvency rumors and South Korean firm Bithumb recovering from an accidental $44 billion Bitcoin distribution. These incidents have fueled investor scrutiny and volatility within the digital asset space, even as the broader cryptocurrency market, led by Bitcoin, showed signs of recovery this week.
Binance Faces Renewed Insolvency Claims
Cryptocurrency giant Binance, the world’s largest exchange by trading volume, found itself again fending off allegations of insolvency and involvement in a significant market downturn. On Wednesday, February 5, 2026, Binance denied issuing a cease-and-desist notice to an X (formerly Twitter) user, Lewsiphur, who had publicly accused the exchange of insolvency and claimed it was ‘solely responsible’ for the ’10/10′ event – a flash crash on October 10, 2025, that triggered the largest-ever liquidation in the cryptocurrency market. Binance categorically stated that the alleged legal letter was a ‘forgery with a very active imagination,’ urging users to remain vigilant against misleading information.
Despite Binance’s denial, another prominent X personality, Leonidas, asserted that they had ‘independently verified a real instance’ of Binance threatening legal action against a user for discussing the October event. This conflicting information has kept the narrative around Binance’s stability in the spotlight. Binance CEO Changpeng ‘CZ’ Zhao took to X to dismiss the speculations as ‘FUD’ (fear, uncertainty, and doubt), stating, ‘Fudders FUD. Binance buys.’
Amid these rumors, blockchain analytics firm CryptoQuant reported that Binance displayed ‘no signs of stress,’ noting that reserves held near 659,000 Bitcoin, netflows remained normal, and reserve movement was minimal. Data from DeFiLlama further supported this, showing a net inflow of $586.50 million on February 4 and $1.30 billion over the prior week. While Binance attributed the October flash crash to macroeconomic pressures, excessive leverage, and Ethereum network congestion in a report last week, critics continue to point to potential malfunctions within Binance’s own trading infrastructure.
Bithumb’s Accidental Bitcoin Distribution
In a separate, high-profile incident, South Korean cryptocurrency exchange Bithumb on Saturday, February 7, 2026, confirmed it had accidentally distributed more than $40 billion worth of Bitcoin to customers. The error, which occurred on Friday, saw 695 affected customers receive at least 2,000 Bitcoins each, instead of the intended small cash rewards of 2,000 Korean won (approximately $1.40) as part of a promotional event. Bithumb quickly restricted trading and withdrawals for the affected users within 35 minutes of the erroneous distribution and issued an apology.
The exchange reported a swift recovery of 99.7% of the 620,000 Bitcoins, which were valued at approximately $44 billion at current market prices. However, the brief period of accidental distribution triggered a sharp, albeit temporary, selloff on the exchange, with Bitcoin prices briefly slumping 17% to 81.1 million won on Bithumb before recovering later that day. The incident highlighted the operational risks inherent in large-scale cryptocurrency exchanges, even for established players like Bithumb, which is a significant, though secondary, player in the South Korean crypto market.
Global Cryptocurrency Trading Market Recovers
Despite these exchange-specific challenges, the broader cryptocurrency market experienced a notable rebound at the end of the week. Bitcoin, the leading digital asset, recovered some of its earlier losses, trading at US$70,178.66 on Friday, February 6, marking an 11.3% increase over 24 hours. Altcoins also saw significant gains, with XRP up 25.2% and Ether and Solana both rising by approximately 10% over the same period, according to Investing News Network.
However, analysts warn that the market remains vulnerable to selling pressure. Antonio Di Giacomo, senior market analyst at XS.com, suggested that Bitcoin’s earlier sharp price decline, which saw it fall over 14% this week to lows below US$62,000, confirmed a structural shift in the market. Di Giacomo noted that Bitcoin has ceased acting as an alternative safe-haven asset and has realigned with the risk asset cycle, with downward pressure intensifying after key technical levels were broken. This led to nearly US$770 million in leveraged long positions being liquidated in 24 hours, indicating an ongoing ‘cleansing phase’ for the market. The decline was further exacerbated by a strong dollar and rising bond yields, which reduced the appeal of non-yielding assets like cryptocurrencies.
Vietnam’s Evolving Crypto Regulatory Framework
In a move towards formalizing the cryptocurrency sector, Vietnam’s Ministry of Finance has circulated a new draft policy proposing a regulatory framework that treats digital assets similarly to traditional securities. Under the proposed system, individuals trading or transferring cryptocurrencies through licensed service providers would face a 0.1% personal income tax on each transaction, mirroring the country’s stock trading tax structure. Corporate investors, conversely, would be subject to the standard 20% corporate income tax on profits generated from crypto trading, after deducting acquisition costs and related expenses.
The proposal also includes clear definitions for crypto assets and sets stringent requirements for exchange operators, demanding at least 10 trillion Vietnamese dong (approximately $408 million) in charter capital, with foreign ownership capped at 49%. These rules are part of Vietnam’s five-year pilot program for a regulated crypto market, which began in September 2025. After an initial lack of applicants due to high hurdles, Vietnam began accepting license applications for crypto exchanges in January 2026, signaling a concrete step towards comprehensive regulatory oversight in a country known for high crypto adoption.
The recent incidents involving major exchanges, coupled with broader market volatility and evolving regulatory landscapes, collectively underscore a critical period for the maturation and stability of the global cryptocurrency trading ecosystem. As regulatory bodies like Vietnam’s Ministry of Finance push for more formal oversight, the industry’s ability to navigate operational challenges and restore investor confidence will be paramount for its long-term growth.