Changpeng “CZ” Zhao, the co-founder and former CEO of Binance, has pushed back hard against claims that the exchange caused last October’s massive crypto crash.
During a live ask-me-anything session on Binance’s platform, Zhao said the accusations were “far-fetched” and ignore what was really happening in the market at the time.
He explained that the crash wasn’t about one company or one exchange. Instead, it was the result of broader market pressure, heavy leverage, and panic selling across the entire crypto space.
Last October 10, the crypto market saw something historic. About $19 billion worth of leveraged positions were wiped out in a single day. It was the largest one-day sell-off in crypto’s 16-year history.
During the chaos, users reported technical problems and price differences on several exchanges, including Binance. These issues added fuel to the panic and made the sell-off even worse.
Binance later stepped in and paid around $600 million in compensation to affected users and businesses for losses linked to platform problems. Zhao said those system issues have since been fixed.
He also pointed out that Binance now operates under regulation in Abu Dhabi and remains under U.S. monitorship, though he hinted that a deal may be close to removing that requirement.
Zhao also confirmed that he was pardoned by former U.S. President Donald Trump in 2025, clearing a major legal cloud over him personally.
Zhao’s message was clear: blaming Binance alone for the crash oversimplifies what was actually a market-wide breakdown, driven by leverage, fear, and fast-moving trades — not a single exchange pulling the strings.
