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Story: Binance CEO Zhao Denies Exchange Caused Market Crash

By Pankaj K

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The Binance CEO faced a storm of criticism after crypto markets lost $19 billion in a single day, with fingers pointing directly at his exchange's role in the massive selloff…

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The January 29 meltdown caught everyone off guard, but Zhao said broader market forces drove the chaos, not anything happening on his platform.

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Binance handles massive volume daily, so it's pretty much guaranteed to be in the spotlight when things go sideways.

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Other exchanges got hit too. Coinbase reported its own surge in trading activity on January 28, with CEO Brian Armstrong confirming on January 30 that their platform crashed…

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The SEC wants answers. On February 1, regulators requested detailed trading data from Binance, Coinbase, and Kraken to figure out exactly what happened during those crucial hours.

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He cited Binance's compliance with regulatory standards and transparent practices as proof the exchange operates above board.

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But experts remain split on whether that'll be enough. Some agree with Zhao's defense, pointing to the complex nature of crypto markets where multiple factors can trigger massive…

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Ethereum traders are still nervous. The second-largest crypto fell to $1,600 during the crash and hasn't fully recovered, trading well below its previous levels.

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Binance plans a virtual town hall meeting on February 2, with Zhao leading discussions about the platform's internal review processes.

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Institutional players are watching closely too. BlackRock's spokesperson said on February 1 that the investment giant monitors crypto market unpredictability as part of risk…

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Trading algorithms came under scrutiny as well. Experts questioned whether Binance's automated systems contributed to the rapid selloff, but the exchange issued a statement on…

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Zhao remains optimistic about Binance's future, expressing confidence the exchange will emerge stronger from this controversy.

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The crypto landscape feels different now. Regulatory bodies worldwide are watching more closely, and the crash intensified debates over stricter controls.

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For now, Zhao's stance is crystal clear - he denies Binance caused the crash. More details may emerge as inquiries progress, but the exchange remains under intense scrutiny.

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The crash highlighted vulnerabilities across the entire crypto infrastructure. FTX reported system slowdowns during peak trading hours, while smaller exchanges like KuCoin and…

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