Cathie Wood Points Finger at Binance Over 10/10 Crash

Binance, the world’s largest crypto exchange, once again finds itself in hot water over thinly-veiled accusations of market manipulation and harmful negligence.

Ark Invest CEO Cathie Wood claims the exchange’s “software glitch” is responsible for triggering October 10’s historic flash crash, which saw a record $28b in liquidations.

Former Binance CEO Changpeng Zhao (CZ) has dismissed these accusations as a “coordinated attack”.

Ark Invest CEO Calls Out Binance’s “Software Glitch”

Crypto markets may be churning amidst macroeconomic and geopolitical turmoil, but Ark Invest founder and CEO Cathie Wood asserts that the worst is over. Speaking on Fox Business earlier this week, Wood claimed that the forced selling and contagion inflicted on markets by the 10/10 crash is “pretty much behind us”.

However, it wasn’t Wood’s commentary on market conditions that caught the ears of the crypto community. When describing the October flash-crash that wiped out over $28b, Wood blamed a Binance “software glitch” for the catastrophic liquidation event. 

Rival exchange operators have poured more gasoline on the flames, with OKX CEO Star Xu directing some thinly-veiled criticism towards his competitor.

Arguing that the market is still underestimating the damage dealt on 10/10, Xu insinuates that Binance has continually failed to act in crypto’s best interests. Instead of supporting healthy long-term growth, Xu opines that Binance has repeatedly turned to extractive and manipulative practices to its own benefit, at the expense of crypto users worldwide.

Commentators and analysts from across the industry have come out against Binance this week, outlining their theses as to why Binance was responsible for the crash. 

Theorists point to a significant disparity in $USDe prices between venues and thin liquidity in collateralized assets like wBETH and $bnSOL as a key weakness.

Adding insult to injury, other detractors have criticized the poor historical performance of assets that get listed on Binance futures.

Ex-Binance CEO CZ Waves Off “Co-ordinated Attack”

At this stage, CZ is no stranger to public condemnation and crypto twitter witch hunts. After having served time in prison for pleading guilty to violating AML laws in 2024, for which he was recently pardoned by President Donald Trump, CZ appears undaunted by this latest wrath of public outcry.

Despite the severe allegations against him and feigning ignorance, CZ has waved off the allegations as nothing more than a “coordinated attack”. Current Binance CEO Richard Teng has ignored the accusations completely, neglecting to comment on or address the slander levied towards the exchange.

Is the Four-Year Cycle a Myth?

While Cathie Wood claims that markets have largely recovered from the 10/10 disaster, the Ark Invest CEO is now questioning the existence of the mythic four-year cycle. Tied closely to the Bitcoin halving, crypto markets have historically followed similar patterns every four years.

However, some investors argue that the four-year cycle has become a relic of the past. Speaking with SolanaFloor at Breakpoint 2025, Raoul Pal argues that markets now move on a five-year cycle, while Bitwise’s Hunter Horsley believes that the arrival of institutional capital has abolished the four-year cycle entirely.

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