Binance, one of the world's leading cryptocurrency exchanges, is actively refuting allegations that it acted as the primary catalyst behind the unprecedented $19 billion liquidation wave that swept through digital asset markets on October 10. The event, widely characterized as the largest in the industry's history, led to widespread speculation and accusations of market manipulation against the exchange.

Binance Denies Sole Trigger Role

In a direct response to these claims, Binance co-CEO Richard Teng has publicly stated that the platform was not "the sole trigger" of the market turmoil. He emphasized that the severe sell-off impacted the entire digital asset ecosystem, indicating a broader market correction rather than an exchange-specific anomaly.

A Broader Market Phenomenon

Teng elaborated that the sharp market downturn was not an isolated incident for Binance. Both centralized and decentralized exchanges, he noted, experienced comparable spikes in liquidations concurrently. His analysis suggests that intense selling pressure emerged uniformly across various trading venues as market volatility escalated significantly.

Macroeconomic Headwinds and Leverage Flush

Attributing the market shock to external forces, Teng highlighted a confluence of macroeconomic and geopolitical developments. He specifically pointed to new U.S. tariffs on China and heightened uncertainty pervading global financial markets. These factors, compounded by the prevalence of highly leveraged positions across crypto derivatives markets, created what Teng described as a "classic leverage flush"—a rapid unwinding of speculative bets.

Comparative Market Impact

To contextualize the crypto market's experience, Teng drew parallels with traditional financial markets. He noted that on the very same day, U.S. equities shed an estimated $1.5 trillion in value, with approximately $150 billion in liquidations occurring within equity markets alone. In contrast, the comparatively smaller crypto market registered $19 billion in forced position closures, a figure distributed across all major exchanges. This comparison aimed to illustrate that the crypto event, while significant for its sector, was part of a larger, global financial tremor.

Binance's Response and User Support

While acknowledging the substantial losses incurred by many users, Teng stated that Binance implemented measures to support affected customers, actions he claimed were not uniformly adopted by other exchanges. He also stressed the absence of abnormal mass withdrawals from Binance during the volatile period, suggesting user confidence in the platform remained largely intact. Furthermore, the company reported no indications of internal technical failures or systemic weaknesses, reinforcing its stance that price action was driven by exogenous market forces rather than any exchange-specific issue.

SAFU Fund Bolstered to $1 Billion

Amidst the volatility, Binance also announced the completion of its previously outlined $1 billion Bitcoin purchase plan for its Secure Asset Fund for Users (SAFU). The exchange acquired an additional 4,545 BTC, valued at approximately $304.58 million at the time, elevating the reserve wallet's total holdings to 15,000 BTC, now valued at about $1.005 billion. Binance confirmed its commitment to automatically replenish the fund's balance back to $1 billion should its value fall below $800 million due to market downturns or legal expenditures.

Looking Ahead: Institutional Resilience

Despite the recent market turbulence, Teng maintained a cautiously optimistic outlook on the long-term trajectory of digital assets. He highlighted continued capital allocation from institutional investors into the sector, interpreting this as evidence that "smart investors are putting money to work." While retail demand has moderated compared to the previous year, institutional and corporate investment, he noted, remains robust. In Teng's view, the industry's long-term development should be assessed based on its fundamental strengths rather than short-term price fluctuations.

Summary

Binance co-CEO Richard Teng has unequivocally pushed back against claims placing the exchange at the center of the October 10 crypto liquidation event. He attributed the $19 billion market turmoil to a confluence of macroeconomic factors and highly leveraged positions across the broader digital asset ecosystem, rather than any internal issues or manipulation by Binance. Teng emphasized that comparable liquidations occurred across all major exchanges, and even traditional markets experienced significant losses on the same day. Binance also announced the full capitalization of its SAFU fund to over $1 billion, reinforcing its commitment to user protection. Despite the recent volatility, Teng expressed optimism regarding institutional investment and the long-term fundamentals of the crypto industry.

Resources

• Global Market Intelligence Report
• Digital Asset Research Institute
• Cryptocurrency Exchange Data Analytics