CZ Rejects Claims Binance Earned 60,000 Bitcoin Trading on BitMEX During March 2020 Market Crash

Changpeng Zhao, widely known as CZ and founder of Binance, has publicly dismissed allegations that Binance profited by acquiring 60,000 Bitcoin through trading activity on BitMEX during the market collapse of March 2020.

The remarks were highlighted in an update circulated by the X account of Cointelegraph, and subsequently reviewed by the HOKANEWS editorial team through publicly accessible commentary and archival market data.

Responding to the claim, Zhao described the allegation succinctly as fake news, pushing back against narratives suggesting Binance capitalized on extreme volatility during the early days of the COVID 19 pandemic.

Source: XPost

Revisiting the March 2020 Market Crash

In March 2020, global financial markets experienced one of the sharpest downturns in modern history as governments worldwide imposed lockdowns in response to the COVID 19 outbreak.

Cryptocurrency markets were not immune. Bitcoin experienced a dramatic sell off, with prices plunging more than 40 percent within days. Liquidity conditions deteriorated rapidly across exchanges, and derivatives platforms recorded significant liquidations.

The episode, often referred to as Black Thursday within crypto circles, became a defining stress test for digital asset infrastructure.

Against that backdrop, allegations have periodically surfaced suggesting that major market participants may have profited from dislocations on derivatives exchanges.

The Allegation and CZ’s Response

The specific claim suggested that Binance generated 60,000 Bitcoin in gains by trading on BitMEX during the March 2020 crash.

Sixty thousand Bitcoin represents a substantial sum, particularly when valued at current market prices. At the time of the crash, Bitcoin was trading at significantly lower levels, yet the quantity would still have represented a sizable position.

Zhao rejected the allegation outright, labeling it false.

While he did not elaborate extensively on the mechanics of the claim, his response sought to dispel the notion that Binance engaged in opportunistic trading on a rival derivatives exchange during the crisis.

Understanding Exchange Dynamics in 2020

In early 2020, BitMEX was one of the dominant platforms for Bitcoin perpetual futures trading. The exchange offered high leverage products, which contributed to significant liquidations during periods of extreme volatility.

Binance, meanwhile, was expanding its own derivatives offerings and building global market share.

The allegation implies that Binance may have traded heavily on BitMEX’s platform during the liquidity crunch. However, no verified evidence has publicly substantiated the claim.

Market participants note that during high volatility events, trading volumes spike across exchanges, and rumors can emerge amid limited transparency.

The Role of Social Media in Market Narratives

The resurfacing of the allegation demonstrates how social media platforms can amplify unverified claims.

Crypto markets operate in a highly digital environment where rumors can circulate rapidly.

Public figures such as Zhao often respond directly to such claims through their personal accounts, aiming to address speculation before it spreads further.

The Cointelegraph X account’s mention of the development brought renewed attention to the issue, prompting broader discussion within trading communities.

The HOKANEWS editorial team independently reviewed available commentary and historical data to ensure responsible coverage.

Binance’s Position in the Industry

Binance has grown into one of the largest cryptocurrency exchanges globally, offering spot trading, derivatives, staking services, and blockchain infrastructure initiatives.

Its size and influence often place it at the center of industry discussions.

Allegations involving major exchanges tend to attract significant attention, particularly when linked to historic market events such as the March 2020 crash.

However, the absence of verifiable documentation supporting the 60,000 Bitcoin claim underscores the importance of evidence based reporting.

Lessons From the March 2020 Volatility

The COVID era market crash revealed both vulnerabilities and resilience within crypto markets.

Several derivatives platforms experienced temporary outages, while extreme liquidations raised questions about leverage practices.

In response, exchanges across the industry introduced improved risk controls, circuit breakers, and more robust liquidity mechanisms.

The episode ultimately strengthened infrastructure standards in the years that followed.

Allegations about trading gains during that period reflect ongoing scrutiny of how exchanges navigated extraordinary volatility.

Market Transparency and Accountability

Crypto exchanges operate in a competitive global environment.

Transparency standards vary across jurisdictions, though leading platforms increasingly publish proof of reserves, audit statements, and risk disclosures.

Claims involving significant trading profits typically require corroborating transaction data or exchange records.

Absent such documentation, market observers caution against accepting unverified narratives.

Zhao’s public rejection aligns with Binance’s broader emphasis on countering misinformation.

Broader Industry Implications

The episode highlights recurring themes in the digital asset space:

Rapid information dissemination
Speculation during volatile periods
Public rebuttals by industry leaders
The need for reliable data

As digital asset markets mature, institutional participation has increased, bringing heightened expectations around transparency and compliance.

Historic events like March 2020 remain reference points for evaluating market integrity.

Investor Perspective

For investors, the central question is whether such allegations materially affect market confidence.

Given that the events in question occurred several years ago, current price dynamics are unlikely to hinge directly on the claim.

However, reputational narratives can influence sentiment, particularly when they involve prominent industry figures.

Zhao’s dismissal may help limit speculation, though ongoing scrutiny of exchange operations remains a defining feature of the crypto ecosystem.

Looking Ahead

As cryptocurrency markets continue to expand, transparency and accountability will remain critical.

Industry leaders frequently face scrutiny not only from regulators but also from market participants and online communities.

Allegations tied to historic volatility events underscore the enduring impact of March 2020 on collective memory within crypto markets.

For now, Zhao’s position is clear: the claim that Binance earned 60,000 Bitcoin trading on BitMEX during the COVID era crash is false.

HOKANEWS will continue monitoring statements from industry leaders and developments related to market transparency.

Conclusion

Changpeng Zhao has firmly rejected allegations that Binance generated 60,000 Bitcoin in trading profits on BitMEX during the March 2020 market crash.

The claim, revived in online discussions and highlighted by Cointelegraph, lacks publicly verified evidence according to available records.

As digital asset markets mature, responsible reporting and evidence based analysis remain essential to separating substantiated developments from speculation.

HOKANEWS remains committed to providing accurate coverage of evolving industry narratives.

hokanews.com – Not Just Crypto News. It’s Crypto Culture.

Writer @Ethan
Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. With a knack for turning complex blockchain developments into engaging, easy-to-understand stories, he keeps readers ahead of the curve in the fast-paced crypto universe. Whether it’s Bitcoin, Ethereum, or emerging altcoins, Ethan dives deep into the markets to uncover insights, rumors, and opportunities that matter to crypto fans everywhere.

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