Key Takeaways
- CZ strongly denied rumors that Binance profited by trading and hedging on BitMEX during the 2020 crash.
- He highlighted BitMEX’s once-daily withdrawal limit, dismissing the viral claim as baseless FUD.
- The controversy echoes ongoing criticism of Binance, especially after the massive October 10, 2025, liquidation.
Binance founder Changpeng Zhao, aka CZ, has slammed “made-up narratives” around Binance’s biggest leverage payday during the COVID-19 crash.
The statement comes amid persistent scrutiny of Binance’s role in major crypto events, including the infamous October 10, 2025, liquidation frenzy that wiped out billions in trader positions.
Did Binance Cash Out 60,000 BTC in Profits from Bitmex?
On February 13, 2026, CZ took to X to address the rumors head-on, stating, “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.”
The controversy erupted after a viral X post by user @ThinkingUSD claimed Binance was the “most profitable trading entity” on BitMEX, allegedly hedging client positions to rake in over 60,000 BTC during the March 12, 2020, crash known as Black Thursday in crypto circles.
The post, which garnered over 101,000 views, suggested this remains the largest withdrawal and highest recorded P&L in BitMEX history.
CZ quickly labeled it “fake news,” emphasizing that Binance never traded on BitMEX and pointing out operational details, such as the platform’s once-daily withdrawal processing.
This isn’t the first time Binance has faced hedging accusations. In the past, critics have pointed to its market-maker arms, but the exchange maintains strict separations between proprietary trading and user funds.
The resurgence of this narrative in 2026 could be tied to broader anti-Binance sentiment, fueled by regulatory settlements and leadership changes following CZ’s 2023 guilty plea to U.S. money-laundering violations.
The Lingering Shadow of the 10/10
Over the past couple of months, CZ has been doing a lot of defending and “FUD busting” on social media as the community scrutiny around the Oct. 10 crash intensified.
Apart from social chatter, the likes of OKX CEO Star Xu and Ark Invest CEO Cathie Wood have directly linked the $19 billion liquidation event to Binance and the software glitch that initiated a cascade of liquidations.
In a January 2026 AMA, CZ called Binance’s blame “far-fetched,” attributing the crash to systemic leverage and market forces rather than exchange errors. Binance compensated affected users with $600 million.
Critics, including OKX CEO Star Xu, accused the platform of irresponsible marketing that encouraged excessive leverage. Xu claimed that Binance’s promotions, such as high APYs on stablecoins, created “dangerous leverage loops” that turned a correction into a meltdown.
While Binance maintains that the largest liquidation event in crypto history was triggered by macroeconomic factors and after the shock of the China tariff, a major chunk of the crypto community believes otherwise.
The 10/10 fallout lingers, with ongoing debates over the risks of centralization in crypto. Binance, which handles over 60% of global spot trading volume, wields immense influence, prompting calls for stronger safeguards.
As crypto markets stabilize, these controversies underscore the need for transparency. While CZ slams “made-up narratives,” the industry watches closely for proof or lack thereof that could reshape perceptions of Binance’s legacy.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
