Changpeng “CZ” Zhao, co-founder and former chief executive officer of Binance, has strongly refuted allegations that the world’s largest digital asset platform was responsible for the widespread crypto market crash that occurred in October. During a live ask-me-anything session hosted on Binance’s social platform, Zhao labeled these accusations as “far-fetched.” He explicitly denied claims that Binance played a primary role in the record-breaking spree of liquidations experienced by users, which were compounded by technical glitches and significant price discrepancies on the platform at the time.

Following the October crash, Binance took steps to address the impact on its users and businesses by offering approximately $600 million in compensation. Zhao emphasized that a significant portion of critics believe the October 10th crash was directly attributable to Binance and demand full compensation from the company. However, he dismissed such views, stating, “If you are living in those world in your head, you are unlikely to be successful in the future.”

Zhao further highlighted Binance's operational transparency and regulatory adherence, noting that the company is regulated in Abu Dhabi, where local regulators have full access to its activities. He also mentioned that the US government maintains an ongoing monitorship of the platform, underscoring its commitment to oversight. Zhao clarified that his statements were made in his capacity as both a shareholder and a user of Binance, rather than as its former CEO.

His relinquishment of the CEO title came in November 2023, as part of a US enforcement resolution. This resolution stemmed from Zhao’s guilty plea to charges of failing to maintain an effective anti-money laundering program. As a condition of the settlement, Binance Holdings committed to retaining an independent external compliance monitor to oversee and rigorously test its compliance protocols. Intriguingly, Zhao was reportedly pardoned by President Donald Trump in October 2025. Additionally, a Bloomberg report from September 2025 indicated that Binance was nearing a potential deal with the US Justice Department, which could lead to the removal of the monitor requirement.

The crypto market crash on October 10th saw an unprecedented $19 billion in leveraged crypto positions wiped out, marking it as the largest single-day liquidation event in the sector’s history, spanning approximately 16 years. Industry figures, including Don Wilson of DRW, voiced criticism regarding the practices of certain crypto exchanges during the meltdown, questioning their impartiality as trading venues. Zhao reiterated that all Binance users who incurred losses due to the market crash as a result of Binance’s internal system problems have already received their full compensation.