CZ Denies Binance Caused $19B Liquidation; Blames USDe Glitch

MGR Online•Economy•217d ago

Reader Briefing

Binance founder Changpeng Zhao refutes claims that the exchange caused a massive $19 billion investor portfolio liquidation, attributing the event to technical issues and market fear.

•Former Binance CEO Changpeng Zhao (CZ) has denied that Binance was responsible for the "Black October" event, which saw over $19 billion in investor assets liquidated.
•CZ explained the de-pegging of Ethena's USDe stablecoin during the crisis was a technical bug, not market manipulation by Binance.
•Binance has compensated affected users with over $283 million to resolve the USDe issue.
•The broader crypto market experienced a loss of over $1 trillion in value during October 2024 due to factors including Bitcoin's price drop, Fed policies, Middle East conflicts, and regulatory uncertainty.

Overview

•In October 2024, a significant market event known as "Black October" occurred, resulting in the liquidation of approximately $19 billion in leveraged investor positions.
•Changpeng Zhao (CZ), speaking as a shareholder and user, stated that accusations of Binance causing the market crash are "Far-fetched."
•CZ clarified that the de-pegging of Ethena's USDe stablecoin was due to a technical bug in the Oracle system and Order Book liquidity, not structural issues.
•Binance compensated users affected by the USDe de-pegging with over $283 million to resolve the issue.
•Prior to these statements, CZ stepped down from his CEO role at Binance to address money laundering charges in the United States, later receiving a pardon.
•The value of the cryptocurrency market experienced a decline of over $1 trillion during the October 2024 event.
•The market downturn was attributed to factors including a sharp drop in Bitcoin's price from above $126,000 to below $80,000, Federal Reserve interest rate policies, Middle East conflicts, and US legal uncertainties.
•Investors are seeking safety in gold, which surged above $5,000 per ounce, as a result of market volatility and risk aversion.

Full article content is available on the original source.

Read on MGR Online (Thai Version)View in Google Translate

Source: MGR Online (Original)

View Original Article

Key Quotes

Changpeng Zhao (CZ)

"The accusation that Binance caused the market crash is "Far-fetched.""

ข้อกล่าวหาที่ว่า Binance เป็นต้นเหตุให้ตลาดพังนั้นเป็นเรื่องที่ “Far-fetched”

Changpeng Zhao (CZ)

"I am speaking only as a "shareholder" and "user" of the platform."

ตนออกมาพูดในฐานะ “ผู้ถือหุ้น” และ “ผู้ใช้งาน” แพลตฟอร์มเท่านั้น

Key Entities

Person

Changpeng Zhao(ฉางเผิง จ้าว)ℹ️

Founder of Binance and former CEO, now speaking as a shareholder and user.

Donald Trump(โดนัลด์ ทรัมป์)ℹ️

US President who pardoned Changpeng Zhao for money laundering charges.

Organization

Binance(ไบแนนซ์)ℹ️

Cryptocurrency exchange implicated in a major market liquidation event, and whose former CEO is responding to accusations.

USDeℹ️

Stablecoin issued by Ethena, which experienced a de-pegging event attributed to a technical glitch.

Ethenaℹ️

The issuer of the USDe stablecoin.

YZi Labs

An investment company founded by Changpeng Zhao, managing assets inherited from Binance's investment arms.