Binance co-founder CZ dismisses blame for October crypto crash

Investing.com -- Changpeng "CZ" Zhao, co-founder and former CEO of Binance, rejected claims that the cryptocurrency exchange was responsible for the digital asset market crash in October 2025.

During a live ask-me-anything session on Binance's social platform Friday, Zhao called accusations that the world's largest digital asset platform caused the market downturn "far-fetched."

Zhao addressed allegations that Binance triggered the record liquidations when users experienced technical problems and price discrepancies on the platform. Following the crash, Binance offered approximately $600 million in compensation to affected customers and businesses.

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

He emphasized that Binance operates as a regulated company in Abu Dubai, with regulators having access to the firm's activities. Zhao also noted that the U.S. government maintains a monitorship of the platform.

Zhao clarified he was speaking as a Binance shareholder and user, not as an executive. He stepped down as CEO in November 2023 as part of a U.S. enforcement resolution after pleading guilty to failing to maintain an effective anti-money laundering program. The settlement required Binance Holdings to retain an independent external compliance monitor to oversee its compliance practices. Zhao received a pardon from President Donald Trump in October 2025.

According to Zhao, Binance users who lost money due to the exchange's system problems during the October market crash have already been compensated.

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