# Binance review: Trust Score 30/100 (Caution)

Source page: https://vaultx.llc/reviews/binance · independent VaultX review by Rex · updated 2026-10-30

Huge, widely used exchange, but regulator actions, withdrawal complaints and a reported hack weigh heavily

Binance is a very large exchange with deep liquidity, low fees and a named founder, Changpeng Zhao. Its record also includes a 2021 UK FCA consumer warning, 2023 US enforcement actions (CFTC, FinCEN), the cancellation of its Australian licence, and a reported UK group claim. On 29-30 October 2026, AP and other outlets reported that Binance was investigating a possible hack, with estimates of more than $6 billion in impact and deposits and withdrawals suspended. Details are still developing. Review sites are dominated by complaints about withdrawals, account holds and support, although many traders praise the trading experience.

**Red flags**
- The FCA issued a consumer warning on 27 June 2021 saying Binance Markets Limited was not authorised to carry on regulated activity in the UK
- The CFTC sued Binance and Zhao in March 2023, and a federal court order in December 2023 found they violated the Commodity Exchange Act and imposed monetary penalties
- FinCEN announced the largest settlement in US Treasury history for a virtual asset firm on 21 November 2023, over alleged willful Bank Secrecy Act violations
- ASIC cancelled Binance Australia's financial services licence in 2023 over concerns about its derivatives business
- AP, Nikkei and others reported on 29-30 October 2026 a potential major security incident, with deposits and withdrawals suspended and estimates above $6 billion
- The notes also record a 2022 incident in which Binance said a compromised DevOps engineer's laptop may have enabled unauthorised withdrawals
- A UK group claim, reported only by secondary media, alleges Binance sold high-risk derivatives without FCA authorisation
- Reviews repeatedly describe withdrawal problems, account holds and unresolved appeals

**Green flags**
- Founder and then-CEO Changpeng Zhao is publicly named in Binance's own materials
- Binance has run a large, working trading platform since 2017, with deep order books and low spot fees reported by users
- Binance's blog says it reached resolutions with the US DOJ, CFTC, OFAC and FinCEN
- Secondary sources report the SEC litigation was voluntarily dismissed with prejudice
- Binance publishes a newsroom and dated announcements
- Users often praise the interface and advanced trading tools

**Sources**
- binance.com https://www.binance.com/en/press
- binance.com https://www.binance.com/en/academy/glossary/roadmap
- exodus.com https://www.exodus.com/assets/docs/binance-coin-whitepaper.pdf
- binance.com https://www.binance.com/en/blog
- binance.com https://www.binance.com/en/support/announcement/detail/c6499e95c15e408ca44ca5f6db975d4d
- binance.com https://www.binance.com/en/square/news/all

Not financial advice. Nobody can pay for a VaultX review.

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