Changpeng “CZ” Zhao, co-founder and former CEO of Binance, defended the world’s largest cryptocurrency exchange against accusations that it played a central role in last October’s $19 billion market crash.
Speaking in a live ask-me-anything session on Binance’s platform, Zhao called such claims “far-fetched” and said they ignore broader market dynamics, Bloomberg reports.
Summary
Zhao called claims that Binance caused the $19 billion crypto crash in October 2025 “far-fetched.”
Binance provided around $600 million to affected users and operates under Abu Dhabi regulation and US monitorship, with Zhao noting system issues were already addressed.
Zhao was pardoned by Trump in 2025, and is reportedly close to a deal removing Binance’s compliance monitor requirement.
On October 10, record liquidations erased roughly $19 billion in leveraged crypto positions—the largest single-day sell-off in the sector’s 16-year history.
Users reported technical glitches and pricing discrepancies on exchanges, including Binance, triggering panic selling. Binance later compensated customers and businesses around $600 million for losses linked to platform issues.
