Changpeng Zhao, extensively often called CZ, has rejected allegations that Binance performed a central position within the largest liquidation occasion in crypto market historical past, an episode that erased roughly $19 billion in leveraged positions final October.
Key Takeaways:
- CZ dismissed claims that Binance triggered the $19 billion Oct. 10 crypto liquidation.
- He mentioned he spoke as a shareholder, not as a Binance govt.
- A short USDe depeg on Binance was later blamed on an inner oracle difficulty.
Zhao addressed the claims throughout a question-and-answer session on Binance’s social media channels, pushing again on options that the change was accountable for the sharp sell-off on Oct. 10.
Based on Bloomberg, Zhao described the accusations as “far-fetched” and mentioned some market members had been wrongly blaming Binance for losses suffered in the course of the crash.
CZ Rejects Claims Binance Induced October 10 Crypto Crash
“There are a bigger group who declare the October tenth crash was attributable to Binance and needs Binance to compensate all the pieces,” Zhao mentioned, dismissing the concept that the change had triggered the liquidation cascade.
He harassed that he was talking as a shareholder and person of the platform, not in an govt capability.
Zhao stepped down as Binance’s chief govt in November 2023 after pleading responsible to US federal prices tied to anti-money laundering violations.
He later served a jail sentence however was pardoned by US President Donald Trump in October final 12 months.
Whereas not operating the change, Zhao stays a distinguished determine within the business and now oversees YZi Labs, an funding agency that advanced from Binance’s former enterprise arm and manages about $10 billion in belongings.
.@cz_binance to those that suppose Binance intentionally brought on the ten/10 market crash: “if you’re residing in these world in your head, you might be unlikely to achieve success sooner or later.” https://t.co/FRmNS7TlA7
— Muyao (@MuyaoShen) January 30, 2026
Binance got here underneath specific scrutiny in the course of the October turmoil after Ethena’s USDe stablecoin briefly misplaced its greenback peg on the change.
In the course of the sell-off, USDe dropped as little as $0.65 on Binance earlier than recovering. The incident was later linked to a platform-specific oracle difficulty quite than a broader drawback with the stablecoin.
Ethena founder Man Younger mentioned on the time that the value dislocation was confined to a single buying and selling venue that relied by itself order e book quite than deeper liquidity swimming pools.
He added that short-term deposit and withdrawal points prevented arbitrage merchants from correcting the imbalance. Binance subsequently compensated affected customers about $283 million.
$1T Crypto Wipeout Rekindles Debate Over Leverage and Threat
Greater than three months on, the market remains to be feeling the aftershocks. Bitcoin, which traded above $126,000 in early October, slid under $80,000 weeks later, dragging the broader market down with it.
The correction worn out over $1 trillion in whole crypto market worth, fueling ongoing debate over leverage, threat administration, and the position of main exchanges in periods of maximum volatility.
Based on XS.com analyst Samer Hasn, a Federal Reserve stance that continues to be impartial to hawkish, mixed with tensions within the Center East, has diminished demand for speculative investments throughout crypto markets.
In the meantime, Bitwise Chief Funding Officer Matt Hougan has mentioned that gold’s surge previous $5,000 an oz and mounting uncertainty round US crypto laws are shaping a essential second for digital asset markets.
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