Pundit claims Binance 'compensation' masks manipulation

Following the colossal crypto crash of last week, Binance initiated a compensation plan for its affected users, but this has received some backlash.

A crypto analyst on 14 October alleged that the exchange initiated the compensation plan because it was responsible for the manipulation that caused the liquidation.

He said the exchange didn’t have to do the airdrop if it did not benefit from the liquidations as it claims.

A misunderstood gesture?

Binance and its partners put together an airdrop for its affected users after the massive liquidation that wiped at least $18 billion off the market.

Although some users appreciated the gesture, some were not pleased with their portion, while others say it was a ploy to cover up the fact that the exchange was behind the liquidation.

This crypto pundit also claims that BNB, the native token of the Binance ecosystem is a scam, just like the exchange itself.

#Binance is a scam#BNB is a scam

Binance paid over $80 million to users after the USDe lost its peg.

They are refunding $400 million to those who got liquidated.

BNB Chain is refunding $45 million to users who lost money trading memecoins.

They don’t have to do any of this.… pic.twitter.com/fkZJpKBPrl

— Crypto Emre (@CryptoEmre10) October 14, 2025

Binance co-founder and former CEO Changpeng Zhao (CZ) on the other hand said it is because of such gestures to protect users that Binance and BNB continue to grow in popularity.

He has also said that such criticisms — popularly known as fear, uncertainty and doubt (FUD) — is good for the exchange and the token, as it makes them more popular.

Some people ask why is #BNB so strong?

While others tried to ignore, hide, shift blame, or attack competitors, the key @BNBChain ecosystem players (Binance, Venus, and more) took hundreds of millions out of their own pockets to PROTECT USERS.

Different value systems. 💪 https://t.co/zb0UIBfcBn

— CZ 🔶 BNB (@cz_binance) October 13, 2025

Binance under investigation

Meanwhile, these allegations have drawn the attention of regulators and Binance is said to be under investigation for market manipulation and money laundering.

🚨BREAKING

BINANCE SUSPECTED OF MONEY LAUNDERING

🇫🇷 FRANCE LAUNCHES FULL SCALE INSPECTION INTO BINANCE

SOURCE: REUTERS pic.twitter.com/TxN2mJpdhx

— Wimar.X (@DefiWimar) October 17, 2025

Earlier today, some X users also accused the platform of massively selling off Bitcoin and Ethereum as a way of liquidating longs as part of the market manipulation.

In line with this, Crypto.com CEO has also filed a case against Binance, alleging that the exchange was involved in manipulation and should be investigated after the $400 billion liquidation crash.

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