Binance’s CZ Addresses October 11 Flash Crash Accusations

Zhao Changpeng, Binance founder, addressed accusations linking the platform to the October 11, 2025 crypto flash crash, deeming them unfounded while committing to future industry work.

This incident highlights ongoing challenges in crypto markets and scrutiny Binance faces, emphasizing the need for robust industry practices and investor confidence in digital asset trading frameworks.

CZ Dismisses $19 Billion Liquidation Allegations as FUD

Zhao Changpeng described the accusations against Binance as “distorted FUD” and emphasized the company’s commitment to industry growth. He highlighted Binance’s actions, including compensations exceeding $328 million and a $300 million recovery fund. In contrast, other industry figures like Star Xu and Cathie Wood attributed the crash to mismanagement or software issues.

The flash crash on October 11, 2025, resulted in over $19 billion being liquidated within a 24-hour period. Bitcoin’s price fell by approximately 15%, and over 16,000 accounts were severely impacted. These events reflect the volatility of the cryptocurrency market and raise questions about the robustness of exchange operations and investor protections.

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“The crash resulted from broader market conditions, not a failure on our platform,” – Zhao Changpeng (CZ), Binance Founder.

Star Xu, CEO of OKX, criticized Binance for its marketing strategies related to the USDe stablecoin, suggesting these actions contributed to the liquidations. Meanwhile, Cathie Wood from Ark Investment blamed a software failure on Binance’s platform, affecting $28 billion in positions.

Market Volatility Sparks Debate Over Exchange Robustness

Did you know? The October 11, 2025 flash crash is compared to past events like the FTX collapse, marking one of the largest single-day losses in crypto history.

According to CoinMarketCap, Bitcoin’s price dipped by 1.08% over the past 24 hours, with a 90-day decline of 28.03%, indicating ongoing market volatility. Its current market cap stands at $1.54 trillion, dominating 59.23% of the crypto market. Trading volumes fell by 25.49% in 24 hours, highlighting shifting market dynamics.

Insights from Coincu Research suggest that such market disruptions could lead to stricter regulations and increased scrutiny on large exchanges like Binance. Historical data reflects cryptocurrency market susceptibility to rapid changes, potentially prompting legislative responses to enhance investor security.