NEW: Major investigation dropping February 26 on one of crypto’s most profitable businesses where multiple employees abused internal data to insider trade over a prolonged period of time.
Binance was probably behind that massive October dump
This is my view and opinion based on onchain data, exchange notices, and timing:
On Oct 6, Binance publicly said it would change how it prices BNSOL and wBETH on Oct 14.
That created a 4-day window (Oct 10–14) where thin books could be smashed to nuke collateral across futures, margin, and loans.
The punch landed in a tight 40-minute window, ~21:36–22:16 UTC on Oct 10:
USDe on Binance printed as low as $0.6567 while other venues stayed around $0.90–0.95.
wBETH collapsed to ~$430 (≈-88% vs ETH parity) only on Binance.
BNSOL flushed to ~$34.9 (≈-82%).
Binance later paid ~$283M to users and rushed the oracle fix early (moved from Oct 14 to Oct 11).
In the 24–48h before the event, >$10B moved:
Big USDT/USDC inflows into exchange hot wallets around 05:30–06:30 UTC on Oct 10.
USDe flows tied to Binance labels: 0xdfd529 (Binance 7), 0x28c6c0 (Binance 14), 0x21a31e (Binance 8).
Coinbase didn’t list the weak links (USDe / wBETH / BNSOL) but did two things:
Moved 1,066 BTC from cold to hot minutes before the cascade ($130M at pre crash prices).
During the drop, large flow that couldn’t fill on Coinbase appears to have been routed out via market makers (Prime-style diversion).
Coinbase’s cbETH peg held; Binance’s wBETH collapsed.
Who provided liquidity?
The two biggest MMs (Wintermute, Jump) were basically absent in the three nuked assets during that window.
No meaningful USDe / wBETH / BNSOL footprints from their known entities.
Pull bids in those books while Binance marks collateral off those books, and the liquidation engine eats itself.
A new account there scaled to ~$1.1B notional BTC/ETH shorts in the last two hours before the nuke, with one ETH add ~1 minute before the tariff post;
PnL ~$160–200M.
Shorting wallets tied to the pattern I tracked:
BTC side:
0xb317d2bc2d3d2df5fa441b5bae0ab9d8b07283ae
ETH side:
0x2ea18c23f72a4b6172c55b411823cdc5335923f4
• Hyperliquid short wallets:
0xb317d2bc2d3d2df5fa441b5bae0ab9d8b07283ae
0x2ea18c23f72a4b6172c55b411823cdc5335923f4
We still seeing the problem even today, maybe the rumors and Fud around Binance are not that crazy
@euler_mab@Roberto296869 Did Euler conduct background checks on USDX? How can they prevent similar issues from happening to other projects? I understand the problem isn't with Euler, but rather that most investors trust Euler and RE7's due diligence. Surely not just anyone can be listed on Euler's.