A cryptocurrency trader, Edison Zhang (known as @edisonzz on X), is facing a lawsuit from Binance after publicly accusing the exchange of causing a market event that liquidated his leveraged positions. The dispute centers on a sharp price movement, or "wick," in the SOL/USDT trading pair on October 11, 2025.
Zhang published an open letter detailing his claims, supported by trade screenshots. He stated his long positions were liquidated at a price of $145, but the market low on Binance at the time dipped to $141. This downward wick, he alleges, pushed the price below his liquidation threshold, triggering an automatic closure. "Everything had been wiped out. My account was at zero. Ten years of heart and soul vanished into thin air," Zhang lamented.
He further claims he received no SMS or email margin call alerts prior to the liquidation. After the incident, attempts to resolve the matter through Binance customer support were unsuccessful, with tickets rejected and conversations stalling.
Zhang initially considered seeking recourse through Abu Dhabi's Financial Services Regulatory Authority (FSRA) but learned it regulates a different Binance entity (Binance FZE). In December 2025, he discovered Binance Global had changed its registered address to the Abu Dhabi Global Market (ADGM). His public posts about pursuing action through ADGM prompted a cease-and-desist notice dated February 3, 2026, from law firm Al Tamimi & Company, which represents Nest Exchange Limited, the operator of Binance.com.
According to Zhang, Binance's representatives cited his support chat records and insisted that seeking recourse through FSRA would be "illegal," directing him instead to formal arbitration at the Hong Kong International Arbitration Centre (HKIAC) or the International Chamber of Commerce (ICC). The exchange has reportedly set a deadline of March 1, 2026, for initiating such proceedings.
