Binance Co-founder Denies Sale Rumors Amidst Market Speculation and Asset Restructuring
Rumors surrounding the potential sale of cryptocurrency exchange giant Binance have been swirling in the crypto sphere, fueled by a viral social media post alleging the company’s impending acquisition by an unnamed decentralized exchange (DEX). Binance co-founder Yi He has vehemently denied these claims, characterizing them as a deliberate disinformation campaign orchestrated by competitors seeking to divert attention from their own challenges. He asserts that Binance’s business model remains robust and that the company regularly receives inquiries from institutional investors interested in partnerships and investments. While acknowledging the possibility of future strategic collaborations or acquisitions of other exchanges, He emphatically stated that Binance is not currently for sale. She even extended an invitation to other platforms considering a sale to contact Binance.
These rumors emerge against a backdrop of significant asset restructuring within Binance. Data reveals that the exchange has liquidated substantial portions of its cryptocurrency holdings since January 2025, including over 24 million XRP, 94.1% of its Bitcoin (BTC), nearly all of its Ethereum (ETH) and USDT, and 99% of its Solana (SOL). The total value of these liquidated assets exceeds $8 billion. Despite this substantial sell-off, Binance’s holdings of its native token, BNB, have only decreased by 16.6%, and user reserves have reportedly increased by $4 billion. The exchange assures users that their funds remain secure and unaffected by these internal asset movements.
Binance’s customer support attributed the significant sell-off to an “accounting adjustment” within its treasury, rather than a deliberate market strategy. The most recent Proof of Reserve (PoR) report corroborates the reduction in XRP holdings from 115 million to 90.4 million tokens, while maintaining a reserve ratio of 103.29%. While the exact motivations behind these asset movements remain unclear, the substantial reduction in holdings of major cryptocurrencies like BTC, ETH, and SOL, coupled with an increase in USDC holdings, suggests a potential strategic shift in asset allocation rather than a complete liquidation.
The timing of these events, coupled with the circulating sale rumors, has sparked considerable discussion within the cryptocurrency community. He’s assertion that rivals are engaging in crisis PR tactics to deflect attention away from their own issues further fuels speculation about the underlying motivations behind the rumors. The significant asset restructuring undertaken by Binance adds another layer of complexity to the narrative, raising questions about the exchange’s long-term strategy and its position within the evolving cryptocurrency landscape.
Despite the ongoing speculation and asset restructuring, Binance maintained its dominant position in the cryptocurrency exchange market throughout 2024. The exchange captured nearly 40% of the total market share, boasting a staggering $7.35 trillion in trading volume. Bybit trailed in second place with a 9.3% market share. Notably, Crypto.com experienced remarkable growth, witnessing a 970% increase in trading volume, from $120.6 billion in 2023 to $1.29 trillion in 2024. Bybit and Gate.io also demonstrated substantial growth, with increases of 398% and 242% respectively.
Adding another dimension to this complex narrative, Binance and the U.S. Securities and Exchange Commission (SEC) jointly filed a motion on February 10, 2025, to temporarily suspend their ongoing legal proceedings for 60 days. This "60-Day Pause" motion, submitted to the U.S. District Court for the District of Columbia, cites the SEC’s newly established crypto task force as a key factor in the decision. The intersection of these developments—sale rumors, substantial asset restructuring, continued market dominance, and the legal pause with the SEC—paints a multifaceted picture of Binance’s current position. These events underscore the dynamic and often turbulent nature of the cryptocurrency market, and highlight the challenges and scrutiny faced by leading players like Binance.