CZ pushes back against Binance ‘FUD’ as blame game for crypto crash persists

Binance co-founder Changpeng “CZ” Zhao took to social media on Monday to counter a series of allegations he called “pretty imaginative FUD” aimed at himself and his former exchange as the main culprit for the dismal crypto price action.

FUD — short for “fear, uncertainty, and doubt” — is a term widely used in crypto to describe the spread of false, misleading or exaggerated information that sows panic in the market. It has also been used to dismiss criticisms, even legitimate ones, that might affect companies.

In a Monday X post, CZ addressed several narratives: speculation that Binance dumped bitcoin to trigger this weekend’s selloff below $75,000, concerns over the company not moving funds to the Secure Asset Fund for Users (SAFU) as stated last week, and a widely circulated jab that he single-handedly “canceled the supercycle.”

“If I had that power, I wouldn’t be on Crypto Twitter with you lot,” CZ joked, responding to sarcastic takes that blamed him for derailing the so-called crypto supercycle — the long-anticipated surge in digital asset prices driven by adoption and macro trends. The confusion appears to stem from a comment he made earlier, saying he was “less confident” in the supercycle thesis than before.

“That’s all I said,” he wrote. “I assume I would also have the power to snap it back then? I’d be snapping my fingers all day long.”

He also denied reports that Binance itself sold $1 billion in BTC to trigger the weekend selloff, saying that the funds belonged to users trading on the platform. “Binance’s wallet balance only changes when users withdraw,” he said. “Most users keep their balance with Binance and use Binance as a wallet.”

He also defended the slow roll of Binance’s plan to convert its “SAFU fund” from stablecoins to bitcoin — announced last week — saying Binance planned to execute the BTC purchases over 30 days, likely in intervals. “You won’t see them buying using a decentralized exchange (DEX),” he said. “Binance is a CEX with the best liquidity in the world.”

His post comes at a time when parts of the crypto community continue to point fingers at Binance over the October 10 flash crash. The sudden plunge wiped out around $19 billion in leveraged positions, and left lasting impact on crypto market liquidity. Star Xu, founder of rival exchange OKX, has publicly blamed Binance for the event.

Zhao, who stepped down as Binance CEO in 2023 after the exchange agreed to a $4.3 billion settlement with U.S. authorities and was sentenced for four months of prison, remains a central figure in crypto.