Changpeng "CZ" Zhao, the co-founder and former CEO of Binance, has refuted allegations that the cryptocurrency exchange was responsible for the digital asset market crash that occurred in October 2025. During a recent live "ask-me-anything" session on Binance's social platform, Zhao dismissed these accusations as "far-fetched".
The October 10th crash saw Bitcoin's price plummet below $82,000, triggering an estimated $28 billion in deleveraging across crypto markets and $1.75 billion in liquidations. Critics have attributed the crash to a software glitch at Binance that led to forced liquidations, and also to Binance's alleged involvement in unregulated schemes and profit-taking. In response, Binance allocated $1 billion from its Secure Asset Fund for Users (SAFU) to Bitcoin in an attempt to stabilize the markets.
Zhao addressed specific allegations that Binance triggered the record liquidations due to technical problems and price discrepancies experienced by users on the platform. He clarified that he was speaking as a Binance shareholder and user, not as an executive, as he stepped down as CEO in November 2023 as part of a U.S. enforcement resolution after pleading guilty to failing to maintain an effective anti-money laundering program.
According to Zhao, the market turbulence stemmed from external macro developments, including tariff-related announcements, rather than exchange-driven activity. He insisted that neither he nor Binance engages in trading crypto for profit or market manipulation, emphasizing that both he and Binance hold Bitcoin as long-term reserves rather than speculative positions. He also pointed out the impracticality of a single entity causing a Bitcoin price crash, given the market's multi-trillion-dollar size.
While acknowledging minor system delays during peak trading volume, Zhao stated that such issues are unavoidable during extreme surges and reaffirmed Binance's commitment to compensating affected users. Following the crash, Binance offered approximately $600 million in compensation to affected customers and businesses. Binance also reported paying about $283 million in compensation caused by de-pegging incidents and related issues.
Zhao emphasized that Binance operates as a regulated company in Abu Dhabi, with regulators having access to the firm's activities, and that the U.S. government maintains a monitorship of the platform. He also addressed conspiracy theories surrounding his personal net worth and alleged dumping of crypto assets, dismissing them as "far-fetched" and based on misunderstandings.
Despite Zhao's assurances, frustration persists within the crypto community, with some traders expressing disappointment that the market has not recovered from the October 10th event. Some have even labeled Zhao a "fraud" and "worse than SBF" on social media platforms. Critics like OKX founder Star Xu and ARK Invest CEO Cathie Wood have pointed to Binance's alleged role in supporting profit takers, insider trading, and Ponzi crypto schemes as contributing factors to the market's volatility and prolonged aftershocks.
