Changpeng Zhao: “Binance the main culprit behind this crash? Imagination running wild FUD”

Changpeng Zhao (CZ), co-founder of Binance, pushed back head-on against claims that he and Binance are being singled out as being behind the recent plunge in the cryptoasset (cryptocurrency) market, calling it “FUD (fear, uncertainty and doubt) driven by excessive imagination.”

On the 2nd (local time), Zhao took to X to address, point by point, claims that ▲Binance sold a large amount of Bitcoin, triggering the weekend sell-off ▲Binance failed to convert the user protection fund (SAFU) into Bitcoin as promised ▲he personally “ended” the so-called “crypto supercycle,” a mocking allegation.

Responding to the claim that he brought down the supercycle, he scoffed: “If I had that kind of power, I wouldn’t be here on Twitter with you,” adding, “Then I should also have the power to bring it back—I’d have been snapping my fingers all day.” Previously, CZ said in a recent interview that he was “less confident than before” about the supercycle thesis.

He also drew a clear line on the Bitcoin selling rumor. CZ said the claim that “Binance itself sold $1 billion worth of BTC” is not true, explaining that “Binance wallet balances change only when users withdraw. Those volumes are the result of trades by users on the exchange.” He added that many users effectively use Binance like a wallet.

On the SAFU fund, he said the issue is not a “delay” in conversion but “staggered execution.” He said, “We plan to convert SAFU assets from stablecoins into Bitcoin in tranches over 30 days,” adding, “We will not be buying on a decentralized exchange (DEX).” He went on to emphasize that “Binance is a centralized exchange (CEX) with world-class liquidity.”

The explanation comes as some communities continue to pin blame on Binance. Since the flash crash on October 10 last year, which saw roughly $19 billion in leveraged positions liquidated, criticism has persisted that market liquidity has contracted sharply. In particular, Star Xu, founder of OKX, has publicly pointed to Binance as one of the causes of the incident.