In-Depth Industry Insights: Binance and the October Market Crash
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Changpeng Zhao Addresses Market Crash Allegations
Changpeng “CZ” Zhao, the influential co-founder and former CEO of Binance, recently addressed claims implicating his cryptocurrency platform in the dramatic market downturn that occurred last October. Speaking during a live Q&A on Binance’s dedicated social platform, Zhao dismissed the allegations as “unfounded,” suggesting they oversimplify the complexity of that volatile period in crypto history.
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CZ Defends Binance Against $19 Billion Liquidation Blame
During the interactive session, Zhao refuted the notion that Binance was the catalyst behind the unprecedented $19 billion in crypto liquidations that took place on October 10. This day was marked by extreme price volatility, system malfunctions, and liquidity challenges across the digital asset industry. Although Binance encountered technical glitches, Zhao stressed that the platform was not the root cause of the market-wide collapse.
“There’s a broader narrative that blames Binance for the market turmoil on October 10th,” Zhao remarked. “If you subscribe to this oversimplified perspective, you might not achieve success in understanding the complexities of the crypto market.” He further explained that Binance made amends by compensating affected users with approximately $600 million, ensuring those impacted by platform-specific issues were fully reimbursed.
Binance’s Regulatory Landscape and Oversight
Zhao also highlighted Binance’s compliance with global regulatory standards. In Abu Dhabi, the exchange operates under local regulatory frameworks, providing authorities with comprehensive access to its operational data. Additionally, Binance is under the supervision of a US government monitorship, underscoring the stringent scrutiny it faces.
Although Zhao stepped down as CEO in November 2023 as part of an agreement with US regulators, he clarified that his statements were made in his capacity as a shareholder and active participant in Binance’s ecosystem.
Legal Developments and the Trump Pardon
In an unexpected legal turn, Zhao received a presidential pardon from Donald Trump in October 2025. This decision sparked intense public debate and political discourse, particularly among Democratic lawmakers who questioned the implications of the pardon and Binance’s alleged political affiliations.
In a separate conversation with CNBC, Zhao denied any business dealings with the Trump family, stating, “There’s no business relationship whatsoever.” He emphasized that the narrative surrounding the pardon and the supposed connections to Trump had been “misinterpreted.”
Market Performance of Binance Coin (BNB)
Currently, Binance Coin (BNB), the exchange’s native token, is valued at $847, reflecting a 5% decrease over the past week. This decline is in line with the broader downturn in the digital asset market, positioning BNB 38% below its peak of $1,369 reached last year.
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