- Social sentiment and legal pressure mount against Binance over its alleged role in the massive October 10 crypto market liquidations.
- The event triggered a lasting market decoupling, with total crypto capitalization trending down ever since, according to data.
- Binance has initiated significant compensation and a $1 billion BTC buy to restore trust, but criticism persists on social media.
- Exchange founder Changpeng Zhao has blamed “fake” social posts and external factors like tariff announcements.
Traders and industry leaders continue to blame Binance for the historic market crash on October 10, 2026, sparking a surge in social media backlash and new legal challenges. Consequently, traders have begun organizing class-action efforts, while numerous other lawsuits and arbitrations are reportedly underway.
The event fundamentally altered market dynamics, breaking crypto’s correlation with traditional indices like the S&P 500. Binance‘s unique role included Hosting flash-crash prices and changing its treatment of the stablecoin Ethena USDE.
Industry figures were quick to criticize the exchange’s actions. Wintermute CEO Evgeny Gaevoy called the auto-deleveraging prices “very strange,” and Ark Invest‘s Cathie Wood blamed billions in liquidations on a software glitch. Meanwhile, OKX CEO Star suggested irresponsible marketing caused the crash.
Binance has attempted to restore confidence by paying over $328 million in compensation plus $400 million in loans. It also announced a $1 billion Bitcoin purchase from its emergency fund.
These efforts have largely failed to stem the tide of criticism. Founder Changpeng Zhao has instead blamed fake social media and attempted to divert blame onto political events.
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