Binance founder Changpeng Zhao, commonly known as CZ, has strongly denied claims that Binance manipulated Bitcoin prices during the October 10 market crash, which led to $20 billion in market liquidation.
He said the drop was caused by global tariff announcements, and not Binance systems or trading activity.
CZ denies Binance’s role in October crash
CZ spoke during a recent AMA session about the concerns of users who blamed Binance for the sudden market drop on October 10.
However, CZ called those accusations misleading and incorrect. He explained that the sudden drop in crypto prices immediately followed major rate announcements, which caused fear in global financial markets.
CZ made it clear that Binance had nothing to do with the drop in Bitcoin prices. He said the timing of the crash proves it was related to economic news and not to any technical problem in the stock market.
Binance does not trade to influence prices
CZ also made it clear that Binance does not trade cryptocurrencies to profit from price movements. He said the company’s role is to provide a trading platform, and not to speculate or control markets.
“We do not buy or sell crypto to make money from price changes,” CZ said, pushing back against claims that Binance profits from market fluctuations.
He also dismissed rumors that Binance or he personally profited from trading during the crash.
CZ clearly stated that Binance does not trade crypto to make a profit from price movements. The platform only provides services for users to buy and sell.
Bitcoin is too big, ‘no one can manipulate it’
Responding to rumors of price manipulation, CZ said the idea is unrealistic. He pointed out that Bitcoin is now a nearly $2 trillion market.
To significantly change the price of Bitcoin, someone would have to risk hundreds of billions of dollars. “No one in their right mind would do that.”
He said: “I don’t know anyone on this planet crazy enough to manipulate Bitcoin.”
Finally, CZ also highlighted that Binance is now a regulated company under the Abu Dhabi Global Market (ADGM). The exchange is closely watched by regulators, and even US compliance teams monitor its activities.
Because of this strict supervision, Binance cannot engage in unfair activities, according to him. All transactions on the platform are reviewed by regulators, making manipulation impossible.
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