Rumors of a possible SEC probe into Binance have reignited scrutiny of the October 10, 2025 liquidation — the largest single market wipeout in crypto history. What happened - On October 10, roughly $19 billion in leveraged positions were liquidated, with $3.21 billion lost in a single minute. About 1.6 million traders were forced out as Bitcoin plunged from roughly $122,000 to $104,000. Why the latest noise matters - The speculation about an SEC inquiry resurfaced after market commentator Hugo Crypto posted on X (formerly Twitter). He stressed he could not independently verify reports of an SEC probe and called the claim a rumor, but argued the broader questions around the October crash deserve serious attention whether or not regulators are officially involved. A running timeline of the fallout - Immediately after the crash, Binance blamed a broader macroeconomic shock and denied responsibility. Media reports later said the exchange paid about $283 million in compensation tied to the event. - In late January 2026, former Binance CEO Changpeng Zhao publicly rejected claims the exchange caused the collapse and said the platform had offered roughly $600 million in compensation to impacted users and businesses — a figure that differs from earlier reports. - Also in January, Ark Invest CEO Cathie Wood publicly suggested on Fox Business that a “Binance software glitch” triggered the crash, while OKX CEO Star Xu accused Binance of running “irresponsible marketing campaigns,” escalating tensions between major exchanges. - In early February, Binance reportedly sent cease-and-desist letters to X users who were publicly speculating about its solvency. Regulatory and industry response - No official confirmation has emerged that the SEC has opened an investigation. Still, former regulators say the scale and speed of the October event warrant a thorough probe. Salman Banaei, an ex-official at the Commodity Futures Trading Commission (CFTC), likened the episode to the 2010 Flash Crash and argued it deserves a similarly rigorous review. Bottom line - Whether or not the SEC is involved, the October 10 liquidation remains a flashpoint for crypto markets — raising questions about exchange infrastructure, transparency, and how leveraged positions are managed. The episode continues to ripple through industry discourse, regulatory debate, and inter-exchange relations. Featured image from OpenArt, chart from TradingView.com. Read more AI-generated news on: undefined/news

#SEC #BTC #CZ