CZ Fires Back: Binance CEO Slams "Paid Attacks" Amid Crypto’s Worst Day
Crypto's biggest name pushes back against the narrative.
As digital asset markets bled red in what analysts are calling the sector's worst single-day performance, Binance founder Changpeng "CZ" Zhao took to social media with a counter-narrative. He didn't address price action or macroeconomic fears. Instead, he pointed a finger at coordinated, paid media campaigns designed to shift blame onto his exchange.
The Allegation Playbook
The tactic is becoming familiar in the high-stakes crypto arena. When volatility strikes, bad actors—often short-sellers or competing interests—allegedly fund negative press to manipulate sentiment. The goal? To create a simple villain for a complex market crash. CZ's statement suggests Binance is currently in the crosshairs of this strategy, painted as the cause rather than a participant in a broader downturn.
A Sector Under Microscope
The attack highlights the persistent growing pains of a trillion-dollar industry maturing in the public eye. Every flash crash or regulatory headline becomes fodder for a blame game, where the largest players make the easiest targets. It's a cynical but effective financial market tactic—find a narrative, fund it, and watch the herd react.
Beyond the Blame Game
CZ's rebuttal forces a tougher question: if the largest global exchange by volume isn't the root cause, what is? The answer likely lies in a cocktail of leveraged positions unwinding, traditional market contagion, and the ever-present specter of regulatory uncertainty. Focusing on a single entity provides a comforting, if inaccurate, explanation for systemic risk.
The real story isn't who to blame for a bad day, but how the industry responds to pressure. Deflecting paid attacks is one thing; building resilient, transparent systems that can withstand them is the real marathon. After all, in crypto, the only thing more volatile than the charts is the narrative surrounding them.
Historic liquidation event that shook crypto markets
On October 10, traders saw $19 billion worth of Leveraged cryptocurrency holdings wiped out in what became the single largest liquidation day in the industry’s approximately 16-year existence. Market observers, including Don Wilson from DRW, voiced concerns about how certain crypto platforms handled the situation, saying they failed to act as neutral marketplaces.
Zhao made clear that Binance customers who lost funds during the October downturn because of platform issues had already received full repayment. The platform distributed $400 million in relief, with $300 million going directly to individual traders who suffered significant liquidation losses and another $100 million set aside for institutional clients facing liquidity pressure.
During the session, Zhao talked about organized negative campaigns targeting him and his former company. He described these as paid internet attacks, cautioning users to watch out for fresh accounts with few followers that spread false information. He warned people with large online followings against taking money to spread attacks, noting such actions damage reputations over time.
Bitcoin supercycle views shift amid global uncertainty
Zhao also shared his changing thoughts on whether bitcoin would enter a supercycle. While he previously felt confident about this possibility, rising tensions between nations and economic instability have made long-term predictions harder.
He referenced his conversation with gold supporter Peter Schiff, saying Bitcoin has better technology than gold but lacks the same level of worldwide acceptance that gold built up over centuries.
Zhao highlighted Binance’s proof-of-reserves system, which lets users check holdings openly. He brought up December 2022, when the platform handled more than $15 billion in withdrawals over seven days, including about $7 billion in just one day, without stopping operations.
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