Changpeng Zhao Slams 'Made-Up Narratives' as Binance Pushes Back on BitMEX Liquidation Rumors

Core Insights - Binance founder Changpeng Zhao (CZ) has criticized "made-up narratives" regarding Binance's involvement in significant leverage events during the COVID-19 crash [1] - CZ has denied allegations that Binance profited from trading on BitMEX during the March 12, 2020 crash, labeling the claims as "fake news" [2][3] - The controversy surrounding Binance's trading practices has resurfaced amid ongoing scrutiny and regulatory challenges [4] Group 1: Allegations and Responses - CZ addressed rumors of Binance cashing out 60,000 BTC in profits from BitMEX, stating that Binance never traded on the platform [2][3] - The viral claim about Binance's profitability on BitMEX was linked to a post that suggested it was the largest withdrawal in BitMEX history, which CZ refuted [3] - Binance has faced similar accusations in the past, but maintains a strict separation between proprietary trading and user funds [4] Group 2: Market Events and Impact - The October 10, 2025 liquidation event, which resulted in $19 billion in liquidations, has been connected to Binance, with industry figures attributing blame to the exchange [5] - CZ has defended Binance against these accusations, attributing the crash to systemic leverage and market forces rather than exchange errors, and noted that Binance compensated affected users with $600 million [6] - The ongoing scrutiny of Binance's operations may be influenced by broader anti-Binance sentiment following regulatory settlements and leadership changes after CZ's guilty plea to U.S. money-laundering violations in 2023 [4]