Binance Founder Zhao Fends Off Crypto Market Crash Accusations

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

In a live ask-me-anything session on Binance’s own social platform, Zhao denied that Binance was a key driver of the record spree of liquidations seen as users encountered technical glitches and price discrepancies on the platform. Binance later offered customers and businesses around $600 million in compensation following the crash.

“There are a larger group who claim the October 10th crash was caused by Binance and wants Binance to compensate everything,” Zhao said on Friday. “If you are living in those world in your head, you are unlikely to be successful in the future.”

He noted that Binance is a regulated company in Abu Dubai and the regulators there have access to the firm’s activity, adding that the US government maintains a monitorship of the platform.

Zhao clarified that he was speaking as a shareholder and user of Binance. He relinquished the CEO title in November 2023 as part of a US enforcement resolution after pleading guilty to failing to maintain an effective anti-money laundering program. As part of the settlement, Binance Holdings agreed to retain an independent external compliance monitor that will oversee and test its compliance. Zhao was pardoned by President Donald Trump in October 2025. 

Bloomberg reported in September 2025 that Binance is close to a potential deal with the US Justice Department that would allow it to drop the monitor requirement.

A record $19 billion in leveraged crypto positions were erased on Oct. 10, the biggest single-day liquidation event in the sector’s roughly 16-year history. Industry participants, including DRW’s Don Wilson criticized the practices of certain crypto exchanges during the meltdown for not being neutral venues for trading.

Zhao added that Binance users who lost money from the October market crash due to Binance’s system problems were already made whole. 

©2026 Bloomberg L.P.

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