Binance Under Fire Again
Crypto Twitter is buzzing with criticism aimed at Binance, the world’s largest cryptocurrency exchange, and its co-founder Changpeng Zhao. Over recent days, users have been circulating serious allegations about the exchange’s role in the October market crash, with some calling CZ a “scammer” and demanding accountability.
I think it’s worth looking at what’s actually happening here. The anger seems to center on events from October 10, 2025 – what some are calling “Crypto Black Friday.” That day saw massive market turmoil following geopolitical announcements, but the real controversy lies in what happened next.
The October Crash Controversy
During the sharpest phase of the market decline, Binance users reported various issues. Some said their accounts were frozen. Others claimed stop-loss orders failed to execute properly. There were also reports of flash crashes that briefly pushed certain assets to near-zero values.
Binance acknowledged technical disruptions at the time, blaming “heavy market activity” for system delays. The exchange maintained that user funds remained secure, but that explanation didn’t satisfy everyone. Critics suggested Binance might have benefited from the trading disruptions during peak volatility.
What’s interesting is how Binance responded afterward. The exchange conducted an internal review and distributed approximately $283 million in compensation to affected users. They followed this with a $400 million support initiative, including reimbursement vouchers and low-interest loans.
But here’s where things get complicated. Some traders who initially accused Binance later retracted their claims after reviewing technical data provided by the exchange. One trader publicly stated that Binance’s logs showed no system errors, and he deleted his original accusations to avoid spreading unverified information.
Why the Backlash Resurfaced
The allegations seemed to quiet down for a while, but they’ve come roaring back in 2026. Perhaps this has something to do with how crypto markets performed after October. Bitcoin and Ethereum gave up all their 2025 gains, closing the year in negative territory.
Industry figures have begun weighing in more publicly. Ark Invest CEO Cathie Wood recently commented that the October 10 crash was associated with a “software glitch on Binance” that deleveraged the system. OKX founder Star Xu added that people have “underestimated the impact of 10/10,” arguing the crash caused “real and lasting damage” to the industry.
Market analysts have been circulating what they describe as evidence of potential wrongdoing. Some point to timing issues – like Binance’s October 6 announcement about updating pricing sources for certain assets, creating a window before the October 14 implementation date. Others highlight large fund movements in the days before the crash.
There are also claims about liquidation timestamps. One trader argues that his liquidation was recorded just outside Binance’s compensation eligibility window, despite automated system emails showing a different timing. This kind of discrepancy fuels suspicion, even if it might just be a technical glitch.
Broader Market Context
It’s important to note that Binance wasn’t the only exchange affected during the October crash. Other major platforms like Coinbase and Robinhood also reported service disruptions. And when you look at token performance across exchanges, the weakness appears to be market-wide rather than specific to any single platform.
Still, the criticism has become quite personal. Users are now targeting CZ directly, questioning his recent comments about buy-and-hold strategies and suggesting that many tokens listed on Binance have performed poorly.
Binance has responded to the backlash. The exchange announced plans to convert its entire $1 billion SAFU reserve from stablecoins to Bitcoin over the next 30 days. CZ himself addressed the allegations, calling them “FUD attacks” that he’s faced since the company’s early days.
What strikes me about this situation is how it reflects the fragile nature of trust in crypto markets. After years of volatility and high-profile failures, unresolved questions tend to resurface during difficult market conditions. The October crash left many people hurt financially, and when that happens, people naturally look for explanations – and sometimes, for someone to blame.
The truth is probably more complex than either side wants to admit. Market crashes usually involve multiple factors – technical issues, market structure problems, leverage, and yes, sometimes questionable behavior. Sorting through what actually happened requires careful analysis, not just social media outrage.
But that’s the challenge with crypto markets. They’re still relatively young, still figuring things out. And when billions of dollars are involved, emotions run high. Whether Binance bears significant responsibility for the October crash or was simply caught in a perfect storm of market conditions remains an open question. What’s clear is that the conversation isn’t going away anytime soon.
