Binance Accused of Manipulating Ethereum Price and Altcoin Market

Binance may be manipulating the Ethereum price and the entire altcoin market, according to crypto analyst Ted. Binance's ETH holdings are only slightly more than what it owes to customers, leading to speculation that the exchange is transferring millions of ETH to market makers using customer funds. This could disrupt price discovery and is a breach of trust if true.

Title: Binance's Ethereum Holdings and Market Manipulation Concerns

Crypto analyst Ted has raised concerns about potential market manipulation by Binance, alleging that the exchange may be manipulating the Ethereum (ETH) price and the broader altcoin market. Ted's claims suggest that Binance's ETH holdings are only slightly more than what it owes to customers, leading to speculation that the exchange is transferring millions of ETH to market makers using customer funds. This could potentially disrupt price discovery and erode trust in the market.

According to Ted, Binance's ETH holdings as of August 3, 2025, are 521,939 ETH [1]. This figure is only marginally higher than the amount owed to customers, which has fueled speculation about the exchange's activities. The concern is that Binance might be transferring ETH to market makers, which could artificially influence market prices.

The allegations come amidst Binance's recent efforts to rebuild trust after the FTX collapse and its own regulatory issues. Binance has been expanding its use of independent custodians, including a prominent deal with Banco Bilbao Vizcaya Argentaria (BBVA), Spain's second-largest bank by assets [2]. This partnership allows traders to keep collateral such as U.S. Treasuries with BBVA, which Binance accepts as margin for trades. The move is seen as a significant step towards maturing the crypto market infrastructure to TradFi standards.

However, the specific mechanism of holding client funds in U.S. Treasuries does not address the core concern about potential market manipulation. If true, the allegations against Binance could have serious implications for market integrity and investor trust. Regulatory bodies and market participants will need to closely monitor Binance's activities to ensure compliance with market rules and maintain the integrity of the crypto market.

References

[1] https://www.stocktitan.net/news/SBET/sharp-link-increases-total-eth-holdings-to-521-939-as-of-august-3-ybivzeoj6kyw.html

[2] https://finance.yahoo.com/news/binance-taps-spains-second-largest-095358007.html