Changpeng Zhao, founder of Binance, refuted claims on October 10, 2025, that the exchange’s actions exacerbated the crypto market crash, citing technical issues and ensuing liquidations.
The incident has drawn attention to Binance’s operational challenges, affecting major cryptocurrencies like BTC and ETH, and sparking discussions around exchange reliability in volatile markets.
Binance’s Role Amidst October 2025 Crypto Crash
Changpeng Zhao (CZ), founder of Binance, addressed accusations that the exchange worsened the October 2025 crypto market crash. He emphasized Binance’s efforts to handle technical issues and large liquidations that affected the market. Zhao announced a public AMA on his X (Twitter) account to dispel FUD, attributing it to “self-proclaimed competitors.” Following his U.S. presidential pardon in 2025, CZ declared he had no operational role at Binance.
$1 Billion Crypto Decline: Market and Binance Losses
The crypto market experienced a decline, with BTC and ETH prices dropping 7-11%. Zhao denied claims of Binance’s involvement, labeling them as competitor-driven disinformation affecting investor sentiment. Lost market value exceeded $1 billion during the crash, resulting in heightened scrutiny. While regulators issued no formal statements, speculation surrounds potential enforcement actions. Binance’s specific losses reached $283 million amid technical challenges.
Star Xu, Founder, OKX, argued the sector “underestimates the crash’s severe impact on ecosystem trust and investor portfolios.” source
Exchange Outages and Their Market Volatility Impact
Past exchange outages frequently correlated with market volatility, similar to events in October 2025. Binance committed to user compensation and technological upgrades post-crash to enhance service resilience. Expert views highlight potential long-term implications for the market, given Binance’s pivotal role. Analysts regard the crash’s impact on trust and investor portfolios as a cautionary factor in ongoing market stability considerations.
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