In today’s crypto update, ARK Invest CEO Cathie Wood has clarified that Changpeng Zhao and Binance were not responsible for the October 10 flash crash. Her latest statement comes months after earlier comments linked the market event to a software issue on the leading exchange.
Cathie Wood Says Binance Was Not Responsible
In a recent podcast, ARK Invest CEO Cathie Wood publicly addressed the controversy surrounding the October 10, 2025, market crash. Speaking directly to CZ, she stated that Binance did not trigger the sharp market decline.
According to Wood, investigators determined that a software glitch caused the incident, not any intentional action by Binance. She stressed that users should not blame the exchange for the market turmoil that followed.
Wood also reiterated that the market was already under pressure during the flash crash due to tariff-related turmoil. The United States and China were at the center of the trade war, with tariffs reportedly rising by 100% before both sides reached a truce in November 2025. According to Wood, investor sentiment was already extremely fragile, and the software glitch created the perfect storm that intensified the October flash crash.
Earlier Fox Business Remarks Sparked Controversy
Meanwhile, the controversy began after Wood, during an appearance on FOX Business on January 26, 2026, stated that a software glitch on the Binance exchange triggered the brutal October 10 market crash.
During her statement, Wood claimed that the incident resulted in a massive deleveraging event estimated at around $28 billion. Her remarks, however, fueled speculation that Binance was directly responsible for the sudden market collapse. Following the interview, Binance faced intense criticism across the crypto industry. Traders and analysts questioned whether the exchange’s systems accelerated the market downturn amid heightened volatility.
Binance founder CZ also had altercations with Star Xu, who alleged that Binance triggered the massive crash through aggressive marketing of the synthetic dollar USDe. Xu claimed the product created a dangerous leverage loop that intensified market instability during the selloff.
Crypto Community Reacts to Clarification
Wood’s latest clarification has sparked mixed reactions among the crypto community. For some traders, the statement has eased criticism previously directed at Binance and its founder, CZ. Supporters of the exchange also welcomed the clarification, arguing that Wood’s earlier remarks created unnecessary confusion in the market and intensified backlash against Binance.
However, others argued that clarifying and shifting the blame would not recover the billions lost during the catastrophic market event. During the crash, the crypto market reportedly saw leveraged positions worth nearly $20 billion wiped out in 24 hours. Bitcoin also plunged from its peak of $126,000 to nearly $104,000 during the selloff, while several altcoins recorded losses of more than 50% as panic spread across the broader crypto market.
Josiah Oluwadare
The CoinRemark Team
