CZ Denies Claims Binance Traded on BitMEX in 2020

Binance co-founder Changpeng Zhao (CZ) has denied a viral claim. It’s about the exchange’s actions during the 2020 market crash. On February 13, CZ responded to a widely shared post that accused Binance of earning more than 60K BTC on BitMEX. The claim suggested Binance hedged user positions before the March 2020 crash. Additionally, it recorded the largest withdrawal and profit in BitMEX history.

Zhao called the story “fake news” and said there was no proof behind it. He also said Binance never traded on BitMEX at all. His response quickly spread across crypto social media, where the original claim had gained traction.

The Viral Claim About 60,000 BTC Profits

The controversy started with a post from the account @ThinkingUSD. The post said Binance was the most profitable trader on BitMEX during the March 12, 2020 crash. It claimed the exchange made over 60K BTC by hedging customer positions.

It also said the activity led to the largest withdrawal. With profit ever recorded on the platform. The statement spread quickly, with many users sharing it across different crypto communities. The claim referred to the so-called “Black Thursday” crash. On that day in March 2020, BTC price dropped sharply within hours. The move triggered massive liquidations on leveraged trading platforms, especially BitMEX.

CZ’s Direct Rebuttal

CZ quickly responded to the allegation on X. He wrote, “Fake news. They are just making things up randomly now.” He added that he felt bad for people who believed such claims without proof. He also made a clear statement. According to CZ, Binance never traded on BitMEX at any time. He tagged BitMEX co-founder Arthur Hayes in the reply. Suggesting he could confirm the claim was false.

Zhao pointed to BitMEX’s withdrawal process as another issue. He said the exchange only processed withdrawals once per day. That would make a giant single withdrawal highly visible and easy to verify. He argued that because of that system, the story didn’t make technical sense.

Mixed Reactions Across Crypto Social Media

The debate spread quickly across crypto Twitter. Some users supported CZ and called the claim baseless FUD. They said there was no on-chain proof or historical data to back the story. Others speculated about exchange behavior during crashes. Some questioned whether large platforms could hedge positions elsewhere. Still, most responses focused on the lack of evidence behind the original claim. Similar accusations have circulated in crypto for years. Large exchanges often face rumors about trading against users or gaining unfair advantages. Many of these claims remain unproven.

Ongoing Trust Questions in the Industry

The situation highlights a familiar issue in crypto. Rumors can spread fast, especially when they involve big exchanges or dramatic numbers. So far, no verifiable data supports the 60K BTC claim. CZ’s public denial has shifted attention back to the need for evidence. For now, the story remains a social media controversy rather than a confirmed event.

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