Changpeng Zhao, known as CZ and former CEO of Binance, has dismissed accusations that the exchange triggered a massive $19 billion cryptocurrency market crash last October. In a live session, he described the claims as far-fetched, emphasizing broader market forces at play. Binance has since compensated affected users with around $600 million.
Changpeng “CZ” Zhao, co-founder and former CEO of the world's largest cryptocurrency exchange, Binance, pushed back against allegations that the platform was central to the $19 billion crypto market downturn in October 2025. During a live ask-me-anything session on Binance's platform, Zhao labeled the accusations “far-fetched,” arguing they overlooked wider market dynamics, according to Bloomberg.
The incident unfolded on October 10, 2025, when record liquidations wiped out approximately $19 billion in leveraged crypto positions. This marked the biggest single-day sell-off in the sector's 16-year history. Traders experienced technical glitches and pricing inconsistencies across various exchanges, including Binance, which fueled widespread panic selling.
In response, Binance disbursed about $600 million to compensate customers and businesses for losses tied to its platform problems. The exchange now operates under regulation in Abu Dhabi and oversight from US authorities. Zhao highlighted that these system issues have been resolved.
Zhao's defense comes amid personal developments: he received a pardon from President Trump in 2025 and is reportedly nearing an agreement to end Binance's compliance monitoring requirements. These steps underscore ongoing efforts to restore confidence in the exchange following past regulatory scrutiny.
While users pointed to platform-specific errors, Zhao stressed that the crash stemmed from overarching market pressures rather than any single entity's actions. This perspective aims to refocus attention on systemic vulnerabilities in cryptocurrency trading.
