CZ's Response to FUD: 10/11 Flash Crash Not Caused by Binance System or Operational Issue, Binance is Regulated and Constrained from Any Wrongdoing操作

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

Regarding recent events, I want to address some key concerns I have seen. 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 make a few points clear:

The first point is very clear: the tariff announcement was made before the market drop. This drop was not caused by any issue with Binance's system or any action 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 intentionally tried to suppress the price. On this point, I can tell you very clearly: Binance does not engage in trading activities to make money by 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 situations 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 trying to cause a price crash through selling could potentially face losses of hundreds of billions of dollars. I don't know of 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 who has such a massive amount of cash to execute this. So, these accusations also do not hold water.

Moreover, as I mentioned in a tweet earlier today, Binance is now a regulated entity, with oversight from global regulatory bodies that can review all accounts and transactions. The company also has monitors in the United States. Therefore, Binance is not in a position to engage in any illicit activities.

Based on all of the above reasons, if anyone still believes that Binance intentionally caused the crash, or tried to sell Bitcoin to manipulate the price, that 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.