Changpeng "CZ" Zhao, who co-founded Binance and formerly served as its chief executive officer, disputed assertions that the exchange was responsible for the intense market sell-off in October 2025.
Speaking in a live ask-me-anything session on Binance's social platform on Friday, Zhao characterized suggestions that the world's largest digital-asset platform triggered the market collapse as "far-fetched." He addressed specific allegations that Binance's technical outages and pricing divergences had precipitated record liquidations among traders.
Binance subsequently offered approximately $600 million in compensation to customers and businesses affected by the platform issues tied to the October downturn, and Zhao said those who lost funds as a result of system problems have already been paid.
Explaining his remarks, Zhao emphasized that he was speaking in his capacity as a Binance shareholder and as a user of the platform, not as a company executive. He also highlighted the scope of regulatory oversight he said exists for Binance, including a regulated status in Abu Dubai where regulators purportedly have access to the firm's activities, and a continued U.S. government monitorship of the exchange.
"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."
Zhao stepped down as Binance's 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. That enforcement settlement required Binance Holdings to retain an independent external compliance monitor to oversee compliance practices.
In October 2025, Zhao received a pardon from President Donald Trump. Zhao reiterated that compensation had been provided to Binance users who lost money due to the exchange's technical problems during the October market shock.
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