Binance Founder Zhao Fends Off Crypto Market Crash Accusations

Binance co-founder and former chief executive Changpeng “CZ” Zhao said ongoing accusations that the world’s largest digital asset platform bears responsibility for last October’s crypto market crash are “untrue.”

In a live ask me anything session on Binance’s own social platform, Zhao denied that Binance was a major factor in the record number of liquidations as users encountered technical glitches and price inconsistencies on the platform. Binance later offered approximately $600 million in compensation to customers and businesses following the crash.

“There is a larger group that claims that the October 10 crash was caused by Binance and wants Binance to compensate for everything,” Zhao said in a statement on Friday. “If you live in this world in your head, you are unlikely to be successful in the future.”

Stating that Binance is a regulated company in Abu Dubai and regulators there have access to the company’s activities, Binance added that the US government keeps the platform under surveillance.

Zhao explained that he was speaking as a shareholder and user of Binance. He gave up his CEO title under a US sanctions decision in November 2023 after pleading guilty to failing to maintain an effective anti-money laundering program. As part of the agreement, Binance Holdings agreed to hire an independent external compliance monitor to audit and test its compliance. Zhao was pardoned by President Donald Trump in October 2025.

Bloomberg reported in September 2025 that Binance was close to a potential deal with the U.S. Department of Justice that would allow it to remove its tracking requirement.

A record $19 billion in leveraged crypto positions were wiped out on October 10, the largest single-day liquidation event in the industry’s nearly 16-year history. Industry participants, including DRW’s Don Wilson, criticized the practices of some crypto exchanges during the meltdown for not being neutral venues for trading.

Zhao added that Binance has already integrated Binance users who lost money from the October market crash due to system issues.

This article was generated from an automated news agency feed without modifications to the text.