Changpeng “CZ” Zhao, the co‐founder and former CEO of Binance, has pushed back against ongoing claims that the world’s largest cryptocurrency exchange was responsible for the sharp market crash that rocked the digital asset sector last October.
Speaking during a live ask‐me‐anything session hosted on Binance’s own social platform, Zhao described those accusations as “far‐fetched,” arguing that they oversimplify what was one of the most turbulent days in crypto market history.
CZ Rejects Blame For $19 Billion Crypto Liquidations
During the session, Zhao rejected the idea that Binance was the primary force behind the record wave of liquidations seen on October 10, when traders across the industry were hit by sudden price swings, technical disruptions, and liquidity issues.
That day, an estimated $19 billion worth of leveraged crypto positions were wiped out, marking the largest single‐day liquidation event in the roughly 16‐year history of the crypto market.
While Binance did experience system glitches and pricing discrepancies during the turmoil, Zhao emphasized that the cryptocurrency exchange was not the cause of the broader market collapse. CZ said:
There are a larger group who claim the October 10th crash was caused by Binance and wants Binance to compensate everything. If you are living in those world in your head, you are unlikely to be successful in the future.
He added that Binance had already compensated users and businesses affected by platform‐specific issues, ultimately paying out around $600 million following the crash. According to Zhao, customers who lost funds due to Binance’s technical problems were fully reimbursed.
Binance Under Global Regulatory Watch
Zhao also addressed regulatory oversight, noting that Binance operates as a regulated entity in Abu Dhabi, where local authorities have full access to the company’s operational data.
The former executive further pointed out that the cryptocurrency exchange remains under the supervision of a US government monitorship, reinforcing his argument that the platform’s activities are subject to significant scrutiny.
Although Zhao no longer runs the company, he clarified that his comments were made in his capacity as a Binance shareholder and user. He stepped down as CEO in November 2023 as part of a resolution with US authorities.
Yet, Zhao’s legal situation took another turn in October 2025, when he received a presidential pardon from Donald Trump. The move reignited public debate and political criticism, particularly from Democratic lawmakers, who questioned both the decision itself and Binance’s alleged political and business connections.
Addressing those concerns in a separate interview with CNBC, Zhao denied having any business relationship with the Trump family. “There’s no business relationship whatsoever,” he said, adding that the broader narrative surrounding the pardon and the exchange’s supposed ties to Trump had been “misconstrued.”
As of this writing, Binance Coin (BNB), the exchange’s native token, is trading at $847. It has declined by 5% over the past week alone, mirroring the broader digital asset market drop. This puts the token 38% below its record high of $1,369, which was reached last year.
Featured image from OpenArt, chart from TradingView.com
