CZ denies Binance dumped $1B in BTC, rejects ’FUD’ over market sell-off
Binance co-founder Changpeng Zhao (CZ) publicly dismissed accusations that he or Binance triggered a recent crypto sell-off by dumping $1 billion in bitcoin. On X, CZ called the allegations “imaginative FUD,” denied that Binance moved or sold funds from its wallets to cause the weekend drop below $75,000, and said the balances change only when users withdraw. He also defended Binance’s plan to convert its $1 billion SAFU (Secure Asset Fund for Users) from stablecoins into BTC, saying purchases will be executed over 30 days using Binance’s centralized liquidity rather than DEXs. CZ pushed back on claims that his earlier comment — that he’s “less confident” about a crypto “supercycle” — somehow canceled the bull thesis, responding with humor and clarifying he lacks market-moving powers. The comments come amid lingering scrutiny of Binance’s role in the Oct. 10 flash crash that erased about $19 billion in leveraged positions; rival exchange executives have publicly blamed Binance for liquidity issues during that event. Key figures: Changpeng Zhao; context: Binance SAFU conversion, $1B figure, weekend drop under $75,000, Oct. 10 flash crash (~$19B losses). Primary keywords: Binance, Changpeng Zhao, BTC dump, SAFU conversion, crypto sell-off. Secondary/semantic keywords: market liquidity, flash crash, centralized exchange, DEX, supercycle.
Neutral
CZ’s public denials clarify Binance’s stance but do not produce new on-chain evidence to fully exonerate or implicate the exchange. For traders, the immediate effect is muted: denials may reduce rumor-driven panic but won’t restore liquidity or reverse price action by themselves. The SAFU conversion plan ( $1B over 30 days) introduces a predictable buying schedule that could provide longer-term BTC demand, but slow execution and market absorption reduce its short-term bullish impact. Historical parallels: post-event denials around major exchanges (e.g., after past flash crashes) often calm sentiment temporarily but only materially affect markets when accompanied by verifiable on-chain flows, transparent audits, or regulatory clarity. Short-term: likely neutral to mildly stabilizing as rumors are countered but uncertainty remains; volatility may persist while traders watch actual wallet movements and SAFU buys. Long-term: if Binance follows through transparently with incremental BTC buys, that could be modestly bullish for BTC liquidity and demand, but lingering regulatory and trust issues mean the market impact will be gradual rather than immediate.