7 months ago
Binance Founder Denies Role in Crypto Market Crash
Changpeng Zhao, the former CEO of Binance, said it's not true that Binance caused a big crash in the crypto market last October.
He explained that Binance is a regulated company and that users who lost money due to Binance's system problems have already been compensated.
Zhao also mentioned that the US government and regulators in Abu Dhabi can check Binance's activities.
He made these comments during a live session on Binance's social platform.
A lot of money, about $19 billion, was lost in that crash, and some people blamed Binance.
But Zhao said those claims are not true and that Binance is working with regulators.
Changpeng Zhao denied Binance's responsibility for the October 2023 crypto market crash.
Binance offered $600 million in compensation for users affected by the crash.
Zhao stated that Binance is regulated and monitored by authorities in Abu Dhabi and the US.
A record $19 billion in leveraged crypto positions were liquidated on October 10, 2023.
Zhao relinquished his CEO title in November 2023 as part of a US enforcement resolution.
- Who
- Changpeng “CZ” Zhao, co-founder and former CEO of Binance
- What
- Denial of Binance's responsibility for the crypto market crash
- Where
- Binance's social platform
- When
- October 10, 2023 (crash), Friday (Zhao's statement)
- Why
- To address accusations and clarify Binance's position
Key facts
- Person
- Changpeng “CZ” Zhao
- Company
- Binance
- Date of Crash
- October 10, 2023
- Compensation Amount
- $600 million
- Regulatory Status
- Regulated in Abu Dhabi, US monitorship
- Liquidation Amount
- $19 billion
- Zhao's Role
- Former CEO, current shareholder and user
- Pardon Date
- October 2025
Quotes
Changpeng 'CZ' Zhao
Co-founder and former CEO of Binance
“There are a larger group who claim the October 10th crash was caused by Binance and wants Binance to compensate everything. If you are living in those world in your head, you are unlikely to be successful in the future.”
livemint.com
Sources
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