Binance is pushing back against claims that it played a central role in the massive liquidation wave that swept through the crypto markets on October 10, an event widely described as the largest in the industry’s history.
In the wake of approximately $19 billion in wiped out positions, some market participants accused the exchange of manipulating prices for their own gain.
Richard Teng, co-CEO of Binance, has now addressed these allegations directly, insisting that the platform was not “the sole trigger” of the unrest and that the sell-off affected the entire digital asset ecosystem.
Binance Co-CEO Analyzes $19 Billion Liquidation Event
Speaking of the incident, Teng said the sharp downturn wasn’t just for Binance. Both centralized and decentralized exchanges experienced similar spikes in liquidations at the same time, he noted. He said there was intense selling pressure on trading platforms as volatility increased.
Teng attributed the market shock to external forces and not to internal exchange activities. He pointed to a mix of macroeconomic and geopolitical developments, including new US tariffs on China and broader uncertainty in global financial markets.
These factors, combined with highly leveraged positions, are everywhere crypto derivatives markets, creating what he described as a “classic leverage flush.”
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Teng drew comparisons with traditional markets, noting that U.S. stocks lost $1.5 trillion in value on the same day, with about $150 billion in liquidations in stocks alone. In contrast, the crypto market – significantly smaller in size – saw $19 billion in forced position closures across all major exchanges.
While acknowledging that many users suffered losses, Teng said Binance has taken steps to support affected customers, adding another exchanges has not taken similar measures. He also emphasized that there were no signs of abnormal mass withdrawals from Binance during the episode.
According to the company, there was no evidence of internal technical failures or systemic weaknesses. The price action, Teng argued, was driven by exogenous market forces and not an exchange-specific problem.
SAFU Fund Reaches $1 Billion in BTC
Despite the volatility, Teng struck a cautiously optimistic tone about the broader trajectory of digital assets. He said institutional investors continue to allocate capital to the sector, describing their participation as evidence that “smart investors are putting money to work.”
While retail demand has weakened compared to last year, but he said investment from institutions and companies remains resilient. According to him, the long-term development of the sector should be assessed on the basis of fundamental factors and not on the basis of short-term price fluctuations.
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In addition to his comments on the liquidation event, the stock market announced it has completed a previously outlined $1 billion Bitcoin purchase plan for its Secure Asset Fund for Users (SAFU).
The exchange acquired 4,545 BTC worth approximately $304.58 million, bringing its total reserve portfolio holdings to 15,000 BTC, currently valued at approximately $1.005 billion.
Binance also stated that if the value of the fund falls below $800 million due to market declines or legal fees, the balance will automatically replenish to $1 billion.
At the time of writing, the exchange’s native token, BNB, is trading at $605. It has registered losses of 5% and 29% respectively in the last seven and fourteen days.
Featured image from OpenArt, chart from TradingView.com