- Star Xu criticizes Binance for triggering market turmoil.
- Bitcoin plummeted 16.5%, causing widespread liquidations.
- CZ denies claims, attributes crash to macroeconomic factors.
On October 10, 2025, OKX CEO Star Xu blamed Binance’s marketing strategies for a market crash, while Binance’s CZ cited macroeconomic factors during an AMA on Binance Square.
The clash between Xu and CZ over the crash’s causes highlights tensions affecting market trust and stability, with notable liquidations exceeding the FTX incident.
On October 10, 2025, the cryptocurrency market experienced a significant crash. OKX CEO Star Xu attributed the downturn to Binance’s high-yield USDe campaign. These actions reportedly created leverage loops without proper risk controls.
Background
The incident involved prominent figures including Star Xu and Changpeng Zhao (CZ). Xu’s critique centered on Binance’s marketing strategy, while CZ defended the company, attributing the crash to external macroeconomic news rather than technical issues.
Market Impact
The market crash sent Bitcoin plunging by 16.5%, dropping prices from $121,000 to $101,000. Ripple effects were observed across various exchanges, with several assets experiencing rapid devaluation. Liquidations ensued, exceeding past incidents in financial damage.
Star Xu, Founder and CEO, OKX, criticized Binance for the October 10, 2025, market crash, stating, “No complexity. No accident. October 10 was caused by irresponsible marketing campaigns by certain companies.” This statement highlights the scrutiny on exchange risk management protocols and comparisons to the 2022 FTX collapse.
Future Projections
In the aftermath, discussions about financial and technological impacts grew among investors. Market analysts debate whether regulatory interventions or enhanced risk control mechanisms are needed. The incident highlights ongoing vulnerabilities within cryptocurrency markets.
Industry experts predict possible changes in market cooperation, with calls for improved risk management. Historical comparisons with previous crashes suggest a need for stricter controls. The incident may redefine trust and operational norms within the sector.
