Binance founder Changpeng Zhao, aka CZ, has dismissed claims that the exchange is complicit in major market crashes, especially the infamous one in October last year that wiped out hundreds of billions of dollars. He stated that these claims are “far-fetched” and have no logical merit.
The crypto sector saw more than $19 billion in liquidations during the October 2025 crash, which all but sealed its fate in the short term. The market has been unable to recover effectively from this major selling spree and has dropped below $80k again earlier today.
Binance’s Discrepancies Over the Years
Binance, the world’s largest cryptocurrency exchange, has a history of system-related failures during major market movements, particularly downward ones. They include price discrepancies, technical glitches, and server down times.
The same happened, but on a much larger scale, during the October 10 crash. So much so that the exchange voluntarily offered businesses and customers more than $600 million in compensation following it.
However, CZ complained that a group of users wanted the exchange to compensate them for everything, including their own poor trading decisions. He claimed that all users affected by glitches were fully compensated.
CZ’s Chequered Past
Zhao currently has no official role within Binance. The maverick former Binance CEO had to step down in 2023 after the US Department of Justice, under Joe Biden, brought a case against him for failing to prevent money laundering through the exchange. He pleaded guilty, and the platform paid $4.3 billion in penalties to the federal government.
As part of the deal, CZ was also sentenced to spend 4 months in jail in 2024 and couldn’t return to the top executive position. However, the billionaire was pardoned by the next US President, Donald Trump, in 2025, and can now theoretically run the exchange once again.
Instead of taking over the reins once again, CZ embarked on a global evangelism drive to promote the crypto sector, especially in developing economies.
Some in the crypto business still hold the crypto innovator responsible for overly speculative behavior that is harming the digital currency revolution.
The CEO of rival OKX crypto exchange stated in a lengthy tweet:
“….., As the largest global platform, Binance has outsized influence—and corresponding responsibility—as an industry leader. Long-term trust in crypto cannot be built on short-term yield games, excessive leverage, or marketing practices that obscure risk…. Crypto is still early.
What we choose to normalize today will determine whether this industry earns lasting trust—or repeats the same mistakes again.”
Source: https://zycrypto.com/binance-not-responsible-for-worsening-market-crash-cz/
