CZ Denies Binance Sold Bitcoin in Market Crash, Announces SAFU Conversion to BTC

Published: 2026-02-02 23:38:45 |

Binance founder Changpeng Zhao (CZ) publicly denied that Binance executed a corporate Bitcoin sell-off that triggered the March 15–16, 2025 crash. CZ said on X that large apparent outflows from exchange wallets were aggregated user withdrawals, not an exchange treasury sale. On-chain analytics showed synchronized withdrawals across major exchanges and whale movements to cold storage, consistent with retail panic and risk-off behaviour. CZ also announced a planned conversion of Binance’s SAFU (Secure Asset Fund for Users) from stablecoins into Bitcoin, to be executed incrementally over ~30 days on liquid centralized exchanges to limit market impact. He rejected claims he “ended the supercycle,” stressing market cycles are driven by broader macro, liquidity and regulatory factors. Analysts point to multi-factor causes for the 15%+ two-day BTC decline: thin weekend liquidity, >$1B in long liquidations, macro pressure and regulatory uncertainty. Key takeaways for traders: withdrawals—not corporate sales—likely magnified the crash; SAFU’s staged BTC purchases signal institutional-level accumulation which may provide medium-term support; expect elevated volatility in the short term given ongoing macro and regulatory risk. Primary keywords: Binance, Changpeng Zhao, SAFU, Bitcoin, market crash. Secondary/semantic keywords: exchange outflows, user withdrawals, on-chain analytics, liquidity, liquidations.

Neutral

The news removes a single-exchange catalyst from blame by clarifying that wallet outflows were user withdrawals rather than a Binance treasury sale, which reduces the probability of an exchange-driven prolonged sell pressure. However, the announcement that SAFU will convert stablecoins into Bitcoin over 30 days introduces a new demand-side factor: phased, institutional-scale buy orders that could be supportive for BTC price but are sized and paced to minimize market impact. Combined with confirmed drivers of the crash (thin weekend liquidity, >$1B long liquidations, macro and regulatory concerns), the overall effect is mixed. Short-term: expect continued elevated volatility as traders react to liquidation cascades, regulatory news, and SAFU execution details. Possible squeeze dynamics could persist if liquidity remains thin. Medium-term: SAFU accumulation and clarified exchange behavior may stabilize sentiment and provide modest support for BTC if buys are executed as described. Long-term: the episode reinforces market maturation—improved public communication by exchange leadership and better parsing of on-chain flow data—reducing the chance that rumors alone drive major sell-offs. Comparable past events: 2017–2018 and isolated weekend crashes often showed similar patterns where weekend liquidity and liquidations amplified price moves; announcements of corporate or treasury buys (e.g., MicroStrategy) have had supportive effects once execution was confirmed. For traders: manage position sizing around scheduled SAFU purchases, watch exchange net flow and liquidation metrics, and treat headlines about ‘‘exchange sales’’ with skepticism unless corroborated by corporate confirmation.