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CZ Denies Binance Caused October 10 Crypto Crash in Live Q&A

He points to regulatory oversight as evidence the exchange did not drive the selloff.

Overview

  • Zhao dismissed the accusations as far-fetched during a live AMA on Binance’s platform, saying the exchange was not responsible for the wider market collapse.
  • Ethena founder Guy Young said USDe’s drop to about $0.65 on Binance resulted from a single-venue internal oracle tied to its own order book while transfers faced disruptions.
  • Binance reimbursed users for platform-specific issues after the event, with reported totals ranging from roughly $283 million to Zhao’s claim of about $600 million.
  • The October 10 dislocation wiped out an estimated $19 billion in leveraged positions, and Bitcoin fell from above $126,000 in early October to briefly below $80,000 in November.
  • Zhao cited regulation in Abu Dhabi and a U.S. monitorship, highlighted proof-of-reserves and the capacity to handle over $15 billion in withdrawals, and said he spoke as a shareholder and user.