Binance fires back at 'fudders' for pouncing on claims of over $20 billion in weekly outflows

Binance co-founder and Chief Customer Service Officer Yi He had a snarky rebuke for people spreading information that suggests the world's largest cryptocurrency exchange has seen over $20 billion in capital outflows during the past week.

"If you are crypto KOL and someone offers you less than $20K to publish FUD about Binance, consider it an insult," He posted. "That's their standard rate for others. If we can help everyone earn some cash by posting a single message worth $20K to criticize Binance, we'd be honored."

He's comments came as part of a retweet of a post crafted by popular crypto investor El Jaboom, countering claims of massive outflows by showing that Binance had added over $4 billion in inflows in the past 24 hours. El Jaboom cited DeFiLlama data.

It appears the notion that Binance had experienced a massive exodus of capital was triggered by a CoinGlass post from late Tuesday that showed Binance had suffered outflows valued at $21.75 billion over the past seven days. Hundreds of X users liked and shared the CoinGlass post, many encouraging others to abandon Binance.

Contrary to CoinGlass data, DeFiLlama shows Binance has added about $900 million during the past week, and over $4 billion in the past 24 hours. CoinGlass' website includes the following disclaimer: "The data and information related to holdings in third-party wallet addresses are derived from publicly available third-party sources. CoinGlass does not validate or ensure the accuracy or timeliness of this information."

Binance's public comments on Wednesday were not the first time this week the exchange has felt the need to go on the defensive. 

On Tuesday, Binance said it "does not profit" from its token listing process, according to a post on X. That statement came in response to Limitless Labs CEO CJ Hetherington alleging Binance requested about 8% of Limitless’ potential token supply, as well as other cash and token security deposits, as part of a negotiation for a potential listing. Notably, Limitless has received backing from Coinbase Ventures as well as the Base Ecosystem Fund.

However, Binance's threat of legal action against Hetherington, for his supposedly "false and defamatory" comments, has sparked a wider backlash. 

"The community might have noticed we’ve removed our previous Binance [Customer Support] post in response to discussion about our listing process," the exchange wrote in an update on Wednesday. "While we stand by our position, the way we communicated was excessive and we sincerely apologize to our users, partners, and the wider industry."

In a show of goodwill on Tuesday, Binance announced a $400 million initiative to partially refund users who lost out on Friday's flash crash.