October 2025 will go down in crypto history as one of the most chaotic months. As markets crashed, the stablecoin USDe lost its foothold on Binance, triggering a huge wave of liquidations. Changpeng Zhao (CZ), founder of Binance, has categorically denied any responsibility. Yet the questions persist: Has Binance made the crisis worse?
In brief
- The October 2025 crypto crash caused $19 billion in liquidations, with the stablecoin USDe falling to $0.65 on Binance.
- Malfunctions in Binance's internal oracle and a lack of transparency worsened the October 2025 crypto crisis.
- CZ denies any Binance responsibility for the October 2025 crypto crash, but critics raise questions about the governance of centralized exchanges.
Crypto: the October 2025 crash and the USDe depeg, a multifaceted crisis
On October 10, 2025, the crypto market suffered an unprecedented shock. Indeed, nearly $19 billion in positions were liquidated in a few hours, plunging investors into panic. At the heart of this storm, the USDe stablecoin, issued by Ethena, lost its anchor at $1 on Binance, falling to $0.65. This depeg amplified losses and sowed doubt about the stability of centralized exchanges.
Post-crisis analyzes revealed that the problem was specific to Binance. While USDe maintained its parity on other platforms, its collapse on Binance triggered cascading liquidations, worsening the price drop. Crypto experts point to a malfunction in Binance's internal oracle, which would have undervalued users' collateral. A technical flaw with devastating consequences.
Binance under fire: technical malfunctions and contested responsibility
Binance, Bybit and Hyperliquid are singled out after the crypto disaster of October 2025. Indeed, criticism focuses on Binance's internal oracle, accused of having misjudged prices during the crash. Result: thousands of crypto accounts were wrongly liquidated, amplifying the panic. Some experts believe that Binance could have anticipated this scenario, in particular by strengthening its relief mechanisms for illiquid stablecoins.
Furthermore, crypto users denounced delays in communication from Binance, as well as a lack of clarity on the causes of the depeg. These delays would have aggravated losses that were avoidable, with better risk management. A situation reminiscent of the collapse of Terra/LUNA in 2022. In both cases, stablecoins played a key role in amplifying the losses. But unlike Terra, Binance had the means to limit the damage. Why were these measures not taken in time?
Changpeng Zhao (CZ) counterattacks: denial of responsibilities and financial compensation
Faced with criticism, Changpeng Zhao adopted a clear strategy: to deny any direct responsibility. In public statements, CZ called the accusations “eccentric”insisting that Binance had complied with current regulations. For him, the crash was the result of extreme market conditions, impossible to fully predict.
To appease users, Binance announced $600 million in compensation for those affected by the USDe depeg. A measure welcomed by some, but considered insufficient by others. Detractors see it above all as a maneuver to save the reputation of the crypto platform, rather than a real recognition of the flaws.
Are centralized exchanges transparent enough to avoid new crises? While Changpeng Zhao (CZ) and Binance try to turn the page on the crypto crash of October 2025, investors are waiting for clear answers. One thing is certain, this crisis has shown that even the giants of the sector are not immune to flaws. And you, do you still trust centralized platforms?
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