Binance co-founder Changpeng 'CZ' Zhao has publicly denied a viral social media claim that accused his exchange of earning over 60,000 Bitcoin (BTC) by trading on rival platform BitMEX during the March 2020 market crash. The allegation, which originated from an account called @ThinkingUSD, suggested Binance hedged user positions ahead of the 'Black Thursday' crash, resulting in what was described as the largest withdrawal and profit in BitMEX's history.
On February 13, 2026, CZ responded directly on X, labeling the story "fake news" and stating, "They are just making things up randomly now. Not sure what their goal is. I feel bad for the people believing this without seeing any proof." He categorically denied any such activity, asserting, "Binance never traded on BitMEX." In his rebuttal, CZ tagged BitMEX co-founder Arthur Hayes, implying Hayes could confirm the falsity of the claim, and cited BitMEX's once-daily withdrawal processing as a technical reason the alleged massive single withdrawal would have been highly visible and verifiable.
The controversy sparked widespread discussion across crypto social media, with many community members supporting CZ's denial and calling the rumor baseless FUD due to a complete lack of on-chain proof or historical data. The incident underscores ongoing trust and transparency challenges within the cryptocurrency industry, where unsubstantiated rumors about major exchanges can rapidly gain traction.
