- CZ rejects Binance’s role in $19B crypto crash.
- Market impacted by leverage unwinds, volatility.
- Exchange allocated $600M compensation for related issues.
Changpeng “CZ” Zhao, Binance’s co-founder, dismissed claims linking Binance to the October 10, 2025, crypto crash as “absurd” and “far-fetched.” He attributed the $19 billion liquidation to market forces like leverage unwinds and widespread volatility.
Changpeng “CZ” Zhao, former CEO of Binance, refuted claims that the platform caused the $19 billion crypto crash on October 10, 2025, attributing it to systemic market forces.
The event highlights systemic vulnerabilities, with the broader market experiencing over $1 trillion in capital losses, underscoring crypto’s volatility challenges.
Former Binance CEO Changpeng Zhao’s Response
Former Binance CEO Changpeng Zhao rejected claims during a live AMA that Binance was responsible for the $19 billion crash, blaming systemic factors like leverage unwinds. Bitcoin saw a sharp fall, illustrating market volatility and leverage risks. Zhao described assumptions of Binance being a singular cause as far-fetched and absurd.
“These accusations are absurd and far-fetched.”– Changpeng “CZ” Zhao, Former CEO and Co-founder of Binance – source
Bitcoin fell significantly, which affected the entire crypto market, leading to $19 billion in liquidations. Binance pledged $600 million to users hit by technical issues but distanced itself from the broader market plunge.
The crash spurred regulatory scrutiny, yet no immediate measures followed. Zhao labeled the allegations a mixture of misinformation and platform-specific glitches challenges. Experts like Guy Young cited internal oracle failures affecting USDe’s stability as isolated incidents.
Such significant liquidations highlight the market’s reliance on leverage, necessitating robust risk management strategies moving forward. Analysts emphasize learning from these events to mitigate future risks. Key trends suggest an increasing focus on exchange transparency and system resilience in handling extreme market volatility.
