CZ Denies Binance Blamed for Crypto Crash, Calls Criticism "Imaginative FUD"

Binance co-founder Changpeng “CZ” Zhao dismissed allegations that Binance triggered the recent crypto selloff, calling them “pretty imaginative FUD” in a February 2, 2026 social media post. He refuted claims that the exchange dumped $1 billion in bitcoin to spark the weekend crash below $75,000, clarifying that user-driven trades—not Binance itself—moved funds. Zhao also addressed criticism over delays in converting Binance’s Secure Asset Fund for Users (SAFU) from stablecoins to bitcoin, noting the purchases would occur over 30 days via its centralized exchange due to superior liquidity. He downplayed his influence on market cycles, joking that if he could “cancel the supercycle,” he’d “snap it back” instantly—responding to backlash over his earlier comment expressing reduced confidence in the rally thesis. His remarks follow the October 10 flash crash that liquidated $19 billion in leveraged positions, with rivals like OKX’s Star Xu blaming Binance. CZ, who stepped down as CEO in 2023 after a $4.3 billion U.S. settlement and served a four-month prison sentence, remains a prominent voice in crypto.