- Market crash linked to Binance’s alleged risky campaign.
- Xu criticizes lack of risk controls.
- Calls for major exchange accountability.
On January 31, 2026, OKX CEO Star Xu accused Binance of igniting the October 10, 2025 crypto crash with a reckless user-acquisition campaign for Ethena’s USDe token.
Criticism highlights concerns over excessive leverage practices, urging industry leaders to increase systemic risk management, impacting investor confidence and market stability.
October 10, 2025, witnessed a crypto market crash reportedly caused by Binance’s user-acquisition campaign. Ethena’s USDe token, involved in leverage loops, depegged massively, leading to a broad selloff affecting major cryptocurrencies.
Star Xu, founder and CEO of OKX, attributed the market crash to Binance’s practices. The campaign allegedly led to excessive leverage, destabilizing the market. Xu urged Binance to address systemic risks, given its global influence and responsibility.
The market impact was severe, with Bitcoin falling drastically from over $120,000. The crash caused a cascade of liquidations across various assets, with some tokens briefly plummeting to near-zero value.
Financial implications were profound, wiping tens of billions of market value. Xu compared the crisis to the FTX collapse, emphasizing the lasting effects on the crypto trading environment and investor trust.
Star Xu, Founder and CEO, OKX, criticized Binance’s marketing practices: “No complexity. No accident. October 10 was caused by irresponsible marketing campaigns by certain companies.” Source 1
Experts remain divided on the cause, with some attributing the crash to Binance’s liquidity vacuum. Others criticized the timing and scope, citing a disconnect between events and sequence of market reactions.
The incident underscored calls for tighter regulation and better risk management in decentralized finance. As the industry matures, exchanges face increased pressure to implement robust controls to safeguard market integrity.
