CZ Denies Binance's Role in October Crypto Crash

Main Summary

Binance Co-founder Changpeng 'CZ' Zhao has publicly denied allegations that the cryptocurrency exchange was responsible for the significant market crash in October 2025, labeling the claims as 'far-fetched'.

Situational Overview

During a live AMA session, Zhao addressed accusations that technical glitches on the platform triggered record liquidations. He confirmed that Binance had already offered approximately $600 million in compensation to affected users and businesses, highlighting the company's regulated status in Abu Dhabi and its oversight by a U.S. government monitor.

Statement Context and Market Position

Speaking as a shareholder, not an executive, Zhao emphasized that users who lost funds due to the exchange's system problems have been reimbursed. His comments aim to restore confidence amid ongoing scrutiny, following his November 2023 resignation as part of a U.S. enforcement resolution.

Conclusion

Zhao's statement clarifies Binance's position on the crash, asserting that compensation has been handled and regulatory oversight is in place. The market will monitor how this addresses broader concerns about platform stability and accountability in the digital asset space.

FAQ

Q: What did 'CZ' Zhao say about the October 2025 crypto crash?
A: He denied that Binance caused the crash, calling the accusations "far-fetched."

Q: Has Binance compensated users affected by the platform's issues during the crash?
A: Yes, according to Zhao, affected users who lost money due to the exchange's system problems have already been compensated.

Source: Investing.com