Former Binance CEO Changpeng “CZ” Zhao has firmly denied accusations linking the cryptocurrency exchange to the historic $19 billion liquidation event that has left the crypto market shaken for over three months.

During a question and answer session streamed on Binance’s social media, Zhao refuted claims suggesting that Binance was a significant factor in the unprecedented wave of forced liquidations that occurred on October 10, where roughly $19 billion worth of crypto holdings were eliminated. “The claims suggesting Binance’s involvement are quite implausible,” Zhao stated, as reported by Bloomberg.

Zhao remarked, “There is a broader group of individuals asserting that the October 10 crash was instigated by Binance and they are demanding compensation from us,” which he categorically dismissed.

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Zhao, who founded Binance in 2017 and stepped down in November 2023 after pleading guilty to federal charges related to anti-money laundering law violations, noted that he was currently discussing matters in his role as a Binance shareholder and user, not as a spokesperson for the company.

Although he is no longer leading Binance, Zhao remains an influential figure in the crypto sector, overseeing YZi Labs, an independent investment firm that has grown from Binance’s previous venture capital arm and now manages approximately $10 billion in assets.

October Market Crash Caused Sharp USDe Depeg on Binance

Central to the confusion during the October 10 crash was a sudden depeg of Ethena’s USDe stablecoin on Binance. The stablecoin dropped from its $1 peg to around $0.65 due to an internal oracle issue on the platform. Ethena Labs founder Guy Young indicated that the price drop was specific to Binance and stemmed from a singular trading venue facing difficulties.

After the incident, Binance compensated affected users with around $283 million. Since then, the broader crypto market has struggled, witnessing Bitcoin’s prices plummet significantly from above $126,000 in early October to briefly below $80,000 in November, contributing to a total market capitalization decrease of over $1 trillion since early October.