CZ denies allegations that Binance caused the crypto market crash

Changpeng Zhao (CZ), co-founder of Binance, took to social media on Monday to dismiss a series of allegations that he called “imaginary FUD” aimed at himself and his former exchange, which is believed to be the main culprit behind the recent crypto price plunge.

FUD — short for “fear, uncertainty, and doubt” — is a common term in crypto to describe the spread of misinformation, mislead, or exaggerate to create panic in the market. However, the term is sometimes also used to dismiss legitimate criticism that could impact a business.

In a post on X on Monday, CZ addressed several prominent allegations: speculation that Binance sold off Bitcoin to trigger the weekend sell-off that caused BTC to drop below $75,000; concerns that the company had not transferred assets into the Secure Asset Fund for Users (SAFU) as announced last week; and a widely circulated mockery claiming he “single-handedly destroyed the crypto super cycle.”

“If I had that power, I wouldn’t be sitting on Crypto Twitter with everyone,” CZ joked, responding to sarcastic comments suggesting he was the one derailing the so-called “super cycle” — a prolonged bullish trend in digital assets expected to be driven by widespread adoption and macro factors. The misunderstanding seems to stem from his earlier statement that he was “less confident” in the super cycle argument than before.

“That’s all I’m saying,” he wrote. “I guess if that’s the case, I should be able to snap my fingers and make it turn back, right? I’d probably snap my fingers all day long.”

CZ also denied reports that Binance sold $1 billion worth of BTC to trigger the weekend sell-off, stating that the funds belonged to users trading on the platform. “Binance wallet balances only change when users withdraw,” he said. “Most users hold assets on Binance and use Binance as a wallet.”

He also defended the slow progress in Binance’s plan to convert the SAFU fund from stablecoins to Bitcoin — announced last week — saying Binance intends to buy BTC within 30 days, likely in multiple installments. “You won’t see them buying through a decentralized exchange (DEX),” he said. “Binance is a centralized exchange (CEX) with the best liquidity in the world.”

CZ’s post comes amid ongoing criticism from some in the crypto community regarding Binance following the flash crash on 10/10. This sudden plunge wiped out approximately $19 billion in leveraged positions and had a lasting impact on market liquidity. Star Xu, founder of rival exchange OKX, publicly blamed Binance for the incident.

Zhao, who stepped down as Binance CEO in 2023 after the exchange settled a $4.3 billion case with US authorities and was sentenced to four months in prison himself, remains a highly influential figure in the crypto industry.

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