CZ Slams Rumors: Binance CEO Denies BitMEX COVID Crash Allegations
Rumors swirled. The crypto sphere buzzed with whispers of a coordinated takedown. Then, CZ spoke.
The Denial That Echoed
Changpeng Zhao, the founder of Binance, cut through the noise with a definitive rebuttal. Industry chatter had linked the exchange to BitMEX's infamous COVID-era crash—a narrative CZ flatly rejected. No evidence, no collusion, just market forces doing what they do best: creating volatility and, conveniently, scapegoats.
Narrative Warfare in Crypto
This isn't just about one rumor. It's a snapshot of the high-stakes narrative battles that define digital asset markets. A single allegation can trigger sell-offs; a firm denial can restore confidence. In an arena where perception often outweighs fundamentals, controlling the story is half the battle. The other half? Having the liquidity to back it up—a trick traditional finance still struggles to pull off without a central bank printing press.
Trust, the Ultimate Asset
For exchanges, credibility is the non-negotiable collateral. When volatility spikes, users don't flock to terms-of-service legalese. They run to platforms with a track record of stability and transparent leadership. CZ's move wasn't just PR; it was a necessary defense of Binance's most valuable currency: user trust. In crypto, your reputation is your balance sheet.
Another day, another unsubstantiated rumor met with a CEO's keyboard. Some things never change—whether it's crypto volatility or the finance sector's love for a juicy, unverified story that moves markets. After all, why let facts get in the way of a good trade?
Zhao: Binance did not trade on BitMEX
According to the ex-Binance CEO, the trading platform has never traded on BitMEX. Zhao mentioned the derivatives exchange’s co-founder, Arthur Hayes, propounding that “his friend” WOULD know if such profits and withdrawals were made. He added that BitMEX processes withdrawals only once daily, which would make the allegation implausible.
4. Fake news. They just making things up randomly now. Not sure what their goal is. I feel bad for the people believing this without seeing any proof. 😂
Binance never traded on BitMex. @CryptoHayes (a friend) would know. BitMex processes withdrawals only once a day (as far as I… pic.twitter.com/qFBiyE1Lji
— CZ 🔶 BNB (@cz_binance) February 13, 2026
Responding to another comment under his post, Zhao suggested the accuser may have spread the rumor to attract, in his words, “not-so-sophisticated” users to their own platform.
In March 2020, bitcoin plunged from about $8,000 to nearly $3,800 within half a day. The drop triggered a liquidity crisis on exchanges, as buy orders failed to absorb the selling pressure. BitMEX, then one of the most active derivatives exchanges, saw $750 million in bitcoin liquidated on the platform within minutes.
On the stock market front, the Dow Jones Industrial Average fell more than 2,000 points in intraday trading. The S&P 500 dropped 7.6%, oil prices slipped by 22%, and yields on 10-year and 30-year US Treasury bonds fell below 0.40% and 1.02%, respectively.
About two months later, the US Department of Justice sentenced Arthur Hayes to six months of home detention for violating the Bank Secrecy Act. The New York Southern District Court found Hayes guilty of failing to implement and maintain anti-money laundering compliance laws at BitMEX.
Because of the platform’s lack of know-your-customer procedures, prosecutors believed the extent of its misconduct may never be known. BitMEX later settled with the US Department of the Treasury by paying $100 million, although it neither admitted nor denied conducting more than $200 million in suspicious transactions.
Allegations against Binance are all FUD, Zhao insists
Zhao’s latest rebuttal came at a time when Binance is dealing with a flurry of negative comments, piling up since October last year. At the start of February, he refuted claims that the train platform dumped Bitcoin to kickstart a weekend selloff that pushed prices below $75,000. Some members of the crypto community suggested Zhao had single-handedly “canceled the supercycle.”
Zhao also denied reports that Binance sold $1 billion in bitcoin to drive the price down to $60,000, insisting that the bitcoin sales discussed on social media were made by users trading on the platform.
“Binance’s wallet balance only changes when users withdraw. Most users keep their balance with Binance and use Binance as a wallet.”
CZ
He also defended the pace of Binance’s plan to convert its SAFU reserves from stablecoins into bitcoin within 30 days, announced at the end of January. Zhao said purchases would likely occur in batches rather than through decentralized exchanges.
“You won’t see them buying using a decentralized exchange (DEX). Binance is a CEX with the best liquidity in the world,” he wrote on X.
As reported by Cryptopolitan on Thursday, the exchange completed the final tranche of its emergency reserve strategy. It purchased 4,545 bitcoins, worth approximately $305 million, for SAFU to conclude its plan to convert $1 billion of funds from stablecoin reserves into 15,000 BTC.
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