Binance Co-founder cautions against sending discount USDT to exchange

Binance co-founder He Yi issued a warning on November 8, 2026, against sending discount USDT or other funds of suspicious origin to Binance. According to Live Bitcoin News, her Chinese-language post said users should avoid depositing such assets because they could face law-enforcement freezes. Crypto.news likewise reported the warning and said the concern involved suspicious USDT transfers. The mechanism described by Live Bitcoin News is important: an address can already be flagged before the questionable funds arrive. That means the compliance issue may exist before a transfer is completed, rather than arising only after Binance observes unusual activity. Any deposit reaching an address subject to law-enforcement action could consequently be frozen. Crypto.news added geographic and counterparty context to the warning, citing possible ties to Myanmar, Cambodia and third parties. That detail appears only in the outlet’s account; Live Bitcoin News instead focused on the discounted or suspicious origin of the USDT and the potential freezing of deposits. Both reports centered on the same risk: users should not assume that transferring USDT to a major exchange removes its compliance history or protection from enforcement.

No figures for the scale of the warning, the number of frozen deposits or the amount of USDT involved were provided by either outlet. The available on-chain data shows that USDT’s circulating supply stood at $176.76 billion, according to DeFiLlama, placing the warning within a very large stablecoin market. Neither the supply figure nor the reports connect that total directly to suspicious transfers.

Live market conditions were subdued. Tether traded at $0.999079, down 0.01% over 24 hours and 0.03% over seven days, while its market capitalization was $176.86 billion. The total crypto market capitalization was $2.61 trillion and described as flat; Bitcoin was up 0.10% over 24 hours. The Fear & Greed index stood at 28, in Fear territory.

The development matters because exchange access to a stablecoin can still be constrained when law enforcement identifies an address as problematic. For market participants, the relevant compliance conditions are the origin of the USDT, any links to flagged addresses and the possibility that suspicious funds are identified before or after arrival. The reports do not indicate how many Binance users are affected or whether additional freezes have occurred.