Crypto: Did Binance worsen the October crash? CZ rejects suspicions

October 2025 will remain etched in crypto history as one of the most chaotic months. As markets collapsed, the USDe stablecoin lost its peg on Binance, triggering a massive wave of liquidations. Changpeng Zhao (CZ), founder of Binance, categorically rejected all responsibility. Yet, questions persist: did Binance worsen the crisis?

Crypto: the October 2025 crash and the USDe depeg, a multifaceted crisis

On October 10, 2025, the crypto market suffered an unprecedented shock. Nearly 19 billion dollars of positions were liquidated in a few hours, plunging investors into panic. At the heart of this storm, the USDe stablecoin, issued by Ethena, lost its 1 dollar peg on Binance, falling to as low as $0.65. This depeg amplified losses and cast doubt on the stability of centralized exchanges.

Post-crisis analyses revealed that the problem was specific to Binance. While USDe maintained its parity on other platforms, its collapse on Binance triggered cascading liquidations, worsening the price crash. Crypto experts point to a malfunction of Binance’s internal oracle, which allegedly undervalued users’ collateral. A technical flaw with devastating consequences.

Binance under fire: technical malfunctions and disputed responsibility

Binance, Bybit, and Hyperliquid are being blamed after the October 2025 crypto catastrophe. Criticism focuses on Binance’s internal oracle, accused of mispricing during the crash. The result: thousands of crypto accounts were wrongfully liquidated, intensifying the panic. Some experts believe Binance could have anticipated this scenario, notably by strengthening backup mechanisms for illiquid stablecoins.

Furthermore, crypto users have denounced delays in Binance’s communication, as well as a lack of clarity on the causes of the depeg. These delays reportedly worsened avoidable losses, with better risk management. The situation reminiscent of Terra/LUNA’s collapse in 2022. In both cases, stablecoins played a key role in amplifying losses. But unlike Terra, Binance had the means to limit damage. Why weren’t these measures taken in time?

Changpeng Zhao (CZ) counterattacks: denial of responsibilities and financial compensations

Facing criticism, Changpeng Zhao adopted a clear strategy: deny any direct responsibility. In public statements, CZ called the accusations “absurd”, insisting that Binance had complied with regulations. For him, the crash was the result of extreme market conditions, impossible to fully predict.

To soothe users, Binance announced a $600 million compensation for those affected by the depeg of USDe. A measure praised by some but deemed insufficient by others. Critics see it mainly as a maneuver to save the crypto platform’s reputation, rather than a genuine acknowledgment of flaws.

Are centralized exchanges transparent enough to avoid new crises? While Changpeng Zhao (CZ) and Binance try to move past the October 2025 crypto crash, investors await clear answers. One thing is certain, this crisis showed that even industry giants are not immune to flaws. And you, do you still trust centralized platforms?