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CZ Dismisses Allegations That Binance Caused the October Sell-off
Changpeng "CZ" Zhao, Binance's co-founder and former CEO, pushed back against assertions that the exchange was responsible for the massive $19 billion liquidation event in October 2025. Speaking during a live ask‑me‑anything on Binance’s platform, Zhao called the theory "far‑fetched," arguing it overlooks broader market drivers including leveraged positions, cross‑exchange liquidity stress, and macro volatility.
What Happened on October 10
On October 10, record liquidations wiped out about $19 billion in leveraged crypto bets — the largest single‑day sell‑off in the sector’s history. Traders reported platform outages and price mismatches across multiple exchanges, which fueled panic selling and cascading liquidations.
Binance Response and Customer Compensation
Binance later acknowledged platform issues and compensated users and affected firms for roughly $600 million in losses tied to technical problems. CZ emphasized that system faults had been addressed and highlighted Binance’s operational changes since the event.
Regulatory Context and Oversight
Zhao noted Binance operates under Abu Dhabi regulation and a U.S. monitorship arrangement. He also referenced his 2025 presidential pardon and said the company is nearing an agreement that could lift the requirement for an external compliance monitor. These developments are central to ongoing conversations about exchange governance and crypto regulation.
As the crypto industry continues to debate responsibility for market stress, the October liquidations underscore risks from leverage, thin liquidity, and technical fragility across exchanges. Market participants and regulators are watching closely as major platforms refine safeguards, resilience, and transparency to reduce systemic spillovers in future volatility.
Source: crypto
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