Former Binance CEO Changpeng “CZ” Zhao has rejected claims that the world’s largest crypto exchange played a role in amplifying October’s historic market crash, which triggered an estimated $19 billion in forced liquidations. The sell-off, one of the largest on record, continues to influence market sentiment months later.
CZ Responds to Liquidation Allegations
During a recent question-and-answer session on Binance-linked social media channel Bloomberg, Zhao dismissed accusations that Binance caused or worsened the Oct. 10 liquidation event. He described the claims as “far-fetched” and said calls for Binance to compensate losses across the market were unfounded. Zhao emphasized that he was speaking as a shareholder and user, not on behalf of the exchange.
Zhao stepped down as Binance CEO in November 2023 after pleading guilty to US federal charges related to anti-money laundering violations. He later served a prison sentence and received a presidential pardon in October 2025. Despite leaving the role, he remains active in the crypto sector through YZi Labs, an investment firm managing roughly $10 billion in assets.
Stablecoin Depeg and Binance Scrutiny
Binance faced heightened scrutiny during the October crash after Ethena’s USDe stablecoin briefly fell from its $1 peg to around $0.65 on the platform. The depeg was later linked to a Binance-specific internal oracle issue combined with temporary deposit and withdrawal disruptions. The exchange compensated affected users approximately $283 million.
Following the liquidation wave, crypto markets struggled to recover. Bitcoin fell sharply from early October highs above $126,000 to below $80,000 in November, contributing to a broader market downturn that erased more than $1 trillion in total cryptocurrency market value.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.