What Crash? Binances CZ Rejects Claims Platform Caused $19b Crypto Crash

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.

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