Changpeng “CZ” Zhao, the co‑founder and former CEO of Binance, has pushed again towards ongoing claims that the world’s largest cryptocurrency trade was liable for the sharp market crash that rocked the digital asset sector final October.
Talking throughout a reside ask‑me‑something session hosted on Binance’s personal social platform, Zhao described these accusations as “far‑fetched,” arguing that they oversimplify what was probably the most turbulent days in crypto market historical past.
CZ Rejects Blame For $19 Billion Crypto Liquidations
Throughout the session, Zhao rejected the concept that Binance was the first drive behind the file wave of liquidations seen on October 10, when merchants throughout the trade have been hit by sudden value swings, technical disruptions, and liquidity points.
That day, an estimated $19 billion price of leveraged crypto positions have been worn out, marking the biggest single‑day liquidation occasion within the roughly 16‑12 months historical past of the crypto market.
Whereas Binance did expertise system glitches and pricing discrepancies in the course of the turmoil, Zhao emphasised that the cryptocurrency trade was not the reason for the broader market collapse. CZ mentioned:
There are a bigger group who declare the October tenth crash was attributable to Binance and needs Binance to compensate every part. In case you are dwelling in these world in your head, you might be unlikely to achieve success sooner or later.
He added that Binance had already compensated customers and companies affected by platform‑particular points, finally paying out round $600 million following the crash. Based on Zhao, prospects who misplaced funds resulting from Binance’s technical issues have been absolutely reimbursed.
Binance Below World Regulatory Watch
Zhao additionally addressed regulatory oversight, noting that Binance operates as a regulated entity in Abu Dhabi, the place native authorities have full entry to the corporate’s operational knowledge.
The previous government additional identified that the cryptocurrency trade stays below the supervision of a US authorities monitorship, reinforcing his argument that the platform’s actions are topic to important scrutiny.
Though Zhao now not runs the corporate, he clarified that his feedback have been made in his capability as a Binance shareholder and person. He stepped down as CEO in November 2023 as a part of a decision with US authorities.
But, Zhao’s authorized state of affairs took one other flip in October 2025, when he acquired a presidential pardon from Donald Trump. The transfer reignited public debate and political criticism, notably from Democratic lawmakers, who questioned each the choice itself and Binance’s alleged political and enterprise connections.
Addressing these considerations in a separate interview with CNBC, Zhao denied having any enterprise relationship with the Trump household. “There’s no enterprise relationship by any means,” he mentioned, including that the broader narrative surrounding the pardon and the trade’s supposed ties to Trump had been “misconstrued.”
As of this writing, Binance Coin (BNB), the trade’s native token, is buying and selling at $847. It has declined by 5% over the previous week alone, mirroring the broader digital asset market drop. This places the token 38% under its file excessive of $1,369, which was reached final 12 months.
Featured picture from OpenArt, chart from TradingView.com
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