What will Binance’s recent interruption, token volatility and legal disputes tell me about the extensive challenges faced in other regions?
Binance returned to the headline
Binance, the world’s largest encryption exchange with trading volume, recorded a turbulent stretch in April. The two major events in a few days have been newly investigated on the platform’s operating stability.
On April 15, the Amazon Web Service (AWS) stopped the Binance system in the AP-Northeast-1 area, including Japan and Korea.
As the AWS service was discontinued, Binance faced technical confusion with various major exchange and encryption platforms. This temporarily suspended the withdrawal of encryption.
Just two days ago, on April 13, MANTRA (OM), a rapid cryptographic asset tied to actual asset token shoes, experienced a sudden and serious conflict. In an hour, the price plunged from $ 6.32 to $ 0.42, exceeding $ 5.5 billion in market value.
Binance, one of the main exchanges that OM trades badly, quickly fell into spotlights. The claims from forced liquidation to questions about abnormal token activities before the accident have been surface. Accordingly, Binance refused to participate in direct participation or illegal acts.
These events arise as Binnis continues to face legal and regulatory pressure. This exchange is currently filing $ 81.5 billion in Nigeria and is under investigation by the US Securities and Exchange Commission.
What happened during AWS interruption
The problem began on April 15 at 1:15 am when AWS experienced power-related failures in the AP-Northeast-1 region on PDT (8:15 am UTC) at 1:15 am. The basic and backup power supply for the cloud server set, especially EC2 instances, fails at the same time, causing ripple effects in 12 important AWS services.
Binance was seriously influenced by other central alternative exchanges such as KUCOIN, MEXC and Coinstore. Platforms and tools that depend on real -time data, including DEDANK and Rabby Wallet, have begun to experience confusion.
By 8:05 am, Binance confirmed that X was facing network problems due to AWS interruption. Exchange mentioned that some transactions were successfully handled, but other transactions were not. It is recommended that the user re -attempts the failed order.
8:07 am UTC and Binance temporarily suspended all withdrawals. This exchange said that the movement was “maintaining safety,” and the backend system described it as a preventive stage while being unstable.
8:16 am UTC and Binance announced that the service began to recover. The exchange warned that the delay could continue, but withdrawal has been resumed.
AWS officially solved the power outage to UTC at 8:51 am, but Binance’s system did not pop out immediately. UTC 9:30 am late, the user continued to report slow performance, failure and omission.
During the power outage, the user had various flaws. Binance’s apps especially indicate red error warnings and gray areas for withdrawal associated with major blockchains such as Ethereum (ETH), Solana (SOL), Polygon (POL) and Arbitrum (Arb).
Some users reported that they could not access funds even after the withdrawal resumed. But there was no extensive report on asset loss.
Dr. MAX LI, CEO of Designation AI Cloud Platform OORT, pointed out the risk of centralized infrastructure in the opinions sent to Crypto.news.
“Today’s blackout is an example of a single failure risk textbook that comes with the central cloud infrastructure. This reminds us why the demand for distributed and flexible models is increasing.”
Mandra conflict deciphers
Mantra’s rapid collapse caused a wave of speculation as many market participants questioned whether the decline was a natural market correction or the result of adjusted manipulation.
Investor Anon Vee explained OM collisions as a clear example of price manipulation. He argued that market manufacturers often work with token projects to expand the prices of less well -known assets. Once the retail investor is dragged, this enthusiasm ends his position, causing a steep reduction.
Encryption commentator Leonidas emphasized the role of Binance to promote OM with similar concerns. He insisted that the exchange helped to build retail over advertisements around the token, and afterwards, the insiders offered off after the price surged.
Mantra’s co -founder John Mullin was opposed to allegations of internal rich trading. He thought the collision was due to forced closure by a specific centralized exchange.
Sherpas, OMies, and broader crypto community,
First off, the team and I greatly appreciate the support that we have received over the past several hours, which we believe is a testament to the strong support MANTRA has among its investors and community.
We have determined that…
— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 13, 2025
According to him, the event occurred during a thin period of fluid, especially on Sunday nights, and the effects worsened.
Binance was a major driver and provided a different explanation by quoting cross -exchange liquidation. The platform explained that the leverage location using OM using OM automatically sells as the price drops, causing the cascade of liquidation.
The exchange also mentioned that in October 2024, it implemented a leverage restriction on OM as part of a wider risk management effort.
The hot chain data has added another survey layer. It is reported that 17 wallets have deposited more than $ 227 million OM tokens to Binance and OKX just before collision.
This does not directly prove the market manipulation, but timing raised concerns about the intentional speculation of large holders. Binance admitted that liquidation throughout the platform strengthened the market downturn.
In January 2025, Binance has already warned the user about OM’s tokenomics, citing the risk of increasing OM’s supply.
After the accident, the exchange repeatedly said that it was not a major cause of price drops, but instead of compulsory liquidation by other centralized exchanges.
Mantra CEO JP MULLIN stated that a conflict was caused by another exchange, supporting this position, and he did not name it.
Some of the communities are skeptical about the behavior of Binance, but this case shows less of direct illegal acts and systematic vulnerabilities throughout the ecosystem.
What is the next step in Binance?
Recent technical issues and market debates can dominate headlines in the short term, but Binance’s more important issue is elsewhere.
In Nigeria, it is faced with a $ 81.5 billion lawsuit filed by the Federal Inland Revenue Service in February 2025.
Of the total claims, $ 79.5 billion is due to economic losses, while $ 2 billion is about unpaid taxes for the 2022-2023 period.
Binance’s P2P trading platform is the main focus of dissatisfaction. The Nigerian authorities argue that it has played an important role in weakening Nara and enabling unmutable capital flow.
The statement submitted by Jimada Yusuf in the National Security Adviser ‘S Office said Binance has more than 386,000 active users in Nigeria in 2023.
The users are known to have produced $ 26 billion in trading volume and $ 35.4 million in net profit. Authorities say that this establishes a real economic footprint that must comply with local financial regulations.
Binance argues that Nigeria is not the main market of the company, but the accuracy of the quoted figures. This exchange stopped trading in March 2024 and continues to refuse to involve call instability.
Company executives are not expected to appear in court. Nadeem Anjarwalla, a local manager who escaped Nigeria in 2024, will be attempted in absence. If you are convicted, Binance can face a complete financial punishment, and Anjarwalla can face prison.
During the procedural enemy, Binance was known to have requested a dismissal of the spelling error in the court document. This claim did not interfere with the procedure.
Binance, meanwhile, faces unresolved regulatory measures in the United States. In June 2023, the SEC filed 13 claims for the company.
This includes promoting unregistered securities proposals related to tokens such as unregistered exchanges and tokens such as BNB and BUSD.
The SEC case was suspended for 60 days of February 2025 and allowed the newly formed encryption task force. At this time, it has not reached the resolution.
This legal battle follows the $ 4.3 billion agreement with the Binance with the US Department of Justice and the Product Futures Trading Committee in November 2023, which has hit the company’s global reputation for violating the prevention of money laundering.
These regulatory development sends more signals beyond the isolated legal confrontation. Although short -term interruption and market fluctuations may eventually be solved, long -term threats to the binary are the ability to solve deep structural and legal problems in major jurisdictions.