Binance co-founder Changpeng Zhao, widely known as CZ, has pushed back against claims that he and Binance were to blame for recent crypto price declines. The response followed a sharp weekend sell-off that sent Bitcoin below $75,000 and revived criticism of major exchanges.
CZ described the allegations as “pretty imaginative FUD” and rejected claims that Binance's actions drove the downturn. FUD stands for fear, uncertainty, and doubt, and often refers to misleading information that spreads panic in crypto markets. The term also appears in debates where critics and companies clash over accountability during volatile trading periods.
This latest exchange unfolded as traders sought explanations for weak price action across digital assets. CZ addressed the claims in a series of posts on X as speculation spread across social platforms. Some critics accused Binance of dumping Bitcoin, while others linked CZ’s past comments to broader market sentiment. The discussion quickly widened beyond retail traders, drawing responses from industry executives.
CZ responded directly to claims that Binance sold Bitcoin to push prices lower during the weekend sell-off. He said Binance wallet balances change only when users withdraw funds and that the exchange does not trade users' assets. According to CZ, most bitcoin movements reflected user activity rather than exchange-driven sales.
Another narrative focused on CZ allegedly “canceling the crypto supercycle.” The claim followed an earlier remark where he said he felt less confident in the supercycle thesis than before. CZ clarified that the comment reflected uncertainty rather than a prediction or market signal.
“If I had that power, I wouldn’t be on Crypto Twitter,” CZ wrote in a joking reply. He also questioned whether critics believed he could reverse the cycle at will. Can one individual truly derail a market worth trillions of dollars?
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CZ also addressed concerns about Binance’s Secure Asset Fund for Users (SAFU).
Last week, Binance announced plans to convert SAFU holdings from stablecoins into Bitcoin.
Critics questioned why the funds had not moved immediately. CZ said Binance planned to execute the bitcoin purchases over 30 days, likely in intervals. He added that Binance would use centralized exchange liquidity rather than decentralized platforms. He described Binance as the largest centralized exchange by liquidity.
CZ also denied reports that Binance sold $1 billion worth of bitcoin, noting that the funds belonged to users trading on the platform. He added that most users keep balances on Binance and use it as a wallet.
The criticism extended beyond social media and reached industry leadership circles.
Some executives linked Binance to the October 10 flash crash that wiped out leveraged positions. That event erased about $19 billion and disrupted market liquidity.
Star Xu, founder of OKX, publicly criticized Binance’s risk protocols. He suggested certain practices may have increased market fragility during the crash. The comments fueled ongoing debate between rival exchanges.
CZ rejected those claims and pointed to broader market conditions, citing high leverage, macroeconomic stress, and liquidity pressures as key drivers. He also noted that Bitcoin’s trillion-dollar market size limits the influence of any single exchange.
Changpeng Zhao rejected claims tying Binance to the crypto selloff and the October flash crash. He denied allegations of bitcoin dumping, clarified the timing of the SAFU fund, and dismissed supercycle rumors. The debate shows how market stress often fuels blame as traders seek clarity during volatile periods.