CZ Pushes Back on Claims Binance Triggered Historic $19B Crypto Liquidations

Changpeng Zhao, widely known as CZ, has rejected allegations that Binance played a central role in the largest liquidation event in crypto market history, an episode that erased roughly $19 billion in leveraged positions last October.

Zhao addressed the claims during a question-and-answer session on Binance’s social media channels, pushing back on suggestions that the exchange was responsible for the sharp sell-off on Oct. 10.

According to Bloomberg, Zhao described the accusations as “far-fetched” and said some market participants were wrongly blaming Binance for losses suffered during the crash.

CZ Rejects Claims Binance Caused October 10 Crypto Crash

“There are a larger group who claim the October 10th crash was caused by Binance and wants Binance to compensate everything,” Zhao said, dismissing the idea that the exchange had triggered the liquidation cascade.

He stressed that he was speaking as a shareholder and user of the platform, not in an executive capacity.

Zhao stepped down as Binance’s chief executive in November 2023 after pleading guilty to US federal charges tied to anti-money laundering violations.

He later served a prison sentence but was pardoned by US President Donald Trump in October last year.

While no longer running the exchange, Zhao remains a prominent figure in the industry and now oversees YZi Labs, an investment firm that evolved from Binance’s former venture arm and manages about $10 billion in assets.

.@cz_binance to those who think Binance deliberately caused the 10/10 market crash: “if you are living in those world in your head, you are unlikely to be successful in the future.” https://t.co/FRmNS7TlA7

— Muyao (@MuyaoShen) January 30, 2026

Binance came under particular scrutiny during the October turmoil after Ethena’s USDe stablecoin briefly lost its dollar peg on the exchange.

During the sell-off, USDe dropped as low as $0.65 on Binance before recovering. The incident was later linked to a platform-specific oracle issue rather than a broader problem with the stablecoin.

Ethena founder Guy Young said at the time that the price dislocation was confined to a single trading venue that relied on its own order book rather than deeper liquidity pools.

He added that temporary deposit and withdrawal issues prevented arbitrage traders from correcting the imbalance. Binance subsequently compensated affected users about $283 million.

$1T Crypto Wipeout Rekindles Debate Over Leverage and Risk

More than three months on, the market is still feeling the aftershocks. Bitcoin, which traded above $126,000 in early October, slid below $80,000 weeks later, dragging the wider market down with it.

The correction wiped out over $1 trillion in total crypto market value, fueling ongoing debate over leverage, risk management, and the role of major exchanges during periods of extreme volatility.

According to XS.com analyst Samer Hasn, a Federal Reserve stance that remains neutral to hawkish, combined with tensions in the Middle East, has reduced demand for speculative investments across crypto markets.

Meanwhile, Bitwise Chief Investment Officer Matt Hougan has said that gold’s surge past $5,000 an ounce and mounting uncertainty around US crypto legislation are shaping a critical moment for digital asset markets.