CZ Response to FUD: The 10/11 Flash Crash was not caused by an issue with Binance's system or operations, and Binance is regulated and cannot engage in any misconduct under the regulatory conditions

BlockBeats News, January 31st, Binance founder CZ said in an AMA:

Regarding recent events, I want to discuss some key concerns I have seen. Currently, the most common complaint seems to be about the market crash on October 10th. Some people claim that Binance caused this crash. I want to clarify a few points about this:

The first point is very clear: the announcement of tariffs preceded the market drop. This decline was not caused by any issues with Binance's system or any actions by Binance. At that time, all other platforms in the industry were also dealing with the surge in trading volume due to the tariff announcement. This fact is very clear.

Secondly, some people claim that Binance engaged in "wash trading" or deliberately tried to suppress the price. On this point, I can tell everyone very clearly: Binance does not engage in trading activities to make money through buying and selling cryptocurrencies. Both the platform and I personally hold a significant amount of Bitcoin, but this is reflected on the balance sheet as our own funds. This is different from cases where companies like MicroStrategy raise funds from investors to buy Bitcoin. From a balance sheet perspective, Binance may be one of the largest Bitcoin holders in the world.

Furthermore, the logic of "wash trading causing a crash" itself is flawed. You have to understand that Bitcoin is a $2 trillion market. Any single entity looking to cause a price crash through selling could potentially face risks of hundreds of billions of dollars. I don't know any entity or individual in the world crazy enough to be willing to risk losing hundreds of billions of dollars to do such a thing. I also don't know anyone with such a huge amount of cash to manipulate with. So, these accusations also do not hold water.

Moreover, as I mentioned in a tweet earlier today, Binance is now a regulated entity with global regulators who can review all accounts and transactions. The company also has U.S. watchdogs. Therefore, Binance is not in a position to engage in any misconduct.

Based on all the above reasons, if anyone still believes that Binance deliberately caused the crash or tried to sell Bitcoin to manipulate the price, it is really far-fetched. If your worldview is like this, then the real world may be different from what you imagine, and holding such beliefs may not be conducive to your long-term success.