Binance, the largest cryptocurrency exchange, has become a focal point in the crypto market’s recent challenges. Following accusations linking the company’s executive, Changpeng Zhao, and his substantial wealth to a market decline dubbed the “10/10 collapse,” Binance has offered an official response. The downturn’s roots are being scrutinized, and questions are emerging about its true causes. Binance’s stance on this matter sheds light on the complexities of the recent market turbulence.
Did Binance Trigger the Market Crisis?
Binance maintains that various external factors, rather than internal issues, catalyzed the October 10 market shock. According to Binance’s statement, cascading liquidations, high-leverage positions, and Ethereum network congestion, rather than Binance-specific problems, contributed to the upheaval. The company asserts that systemic liquidations in the U.S. stock markets created ripples felt in the crypto space.
“On October 10, 2025, the crypto market experienced a macro shock… it was actually triggered by cascading liquidations, macro risks from highly leveraged positions, risk controls by market makers limiting liquidity, and congestion within the Ethereum network.” – Binance
Furthermore, the global financial markets faced significant disruptions, with the S&P 500 and Nasdaq suffering considerable losses. The impact on cryptocurrency was exacerbated by algorithmic trading systems that pulled liquidity, causing heightened price swings and volatilities across different exchanges.
What Steps Did Binance Take to Address the Issues?
To address the liquidity and transfer issues faced, Binance implemented compensation measures. These initiatives came about after recognizing that their platform, like other exchanges, faced operational challenges during highly volatile conditions. Binance has detailed specific incidents that required compensation due to the technical hurdles experienced during this period.
“The widening spreads in already weak markets created a short-term liquidity gap…complicating position balancing and increasing price volatility.” – Binance
Specific incidents involved a temporary disruption in asset transfers and deviations in certain indexes. Despite these, Binance confirmed the integrity of its core operations and addressed the anomalies through compensation and enhanced safeguards.
- Binance refunded $328 million to affected users by October 22, 2025.
- Initiated a $300 million goodwill program to assist others impacted.
- Continued operation of core matching systems ensured stability amid turbulent conditions.
Despite the turmoil, the company argues the core matching engine and risk controls functioned seamlessly. Binance’s actions reflect its commitment to maintaining operational integrity and supporting impacted users in the wake of this crisis.
