Discussions surrounding the sharp drop in the cryptocurrency market on October 10th have been reignited.
The controversy over responsibility for the incident quickly escalated into a direct verbal clash between industry giants, with leading investors and industry leaders also joining the debate.
The process was sparked on January 26th by Ark Invest CEO Cathie Wood. In a television appearance, Wood suggested that a software glitch at Binance was the direct trigger for the sharp Bitcoin drop on October 10th.
This statement is noteworthy because it marks the first time a high-ranking figure from the traditional financial world has explicitly held Binance responsible in mainstream media.
On January 28th, the debate within the cryptocurrency community rapidly escalated. Numerous influencers and traders made posts questioning Binance’s system stability and risk management capabilities. The controversy reached its initial peak, and public pressure intensified.
On January 30, Binance founder Changpeng Zhao (CZ) directly responded to the allegations during a Q&A session.
Zhao argued that the October 10th drop was not caused by Binance’s systems. He stated that the platform took necessary steps to mitigate user losses after the incident, and claimed that the growing negative campaigns on social media were a “FUD” (Fear, Uncertainty, and Doubt) operation organized by competitors.
Tensions escalated further today. OKX founder Star Xu publicly stated for the first time that Binance should bear responsibility for the October 10th crash. This statement was interpreted as a rare direct confrontation between major exchanges. Binance responded quickly. Binance co-founder He Yi indirectly denied the allegations via social media.
The debate wasn’t limited to stock exchanges. Wintermute CEO Evgeny Gaevoy, Solana co-founder Anatoly Yakovenko, and Strategy founder Michael Saylor also publicly expressed their views.
*This is not investment advice.
