In a savage takedown that’s reigniting old crypto wars, Binance founder CZ has fired back at explosive rumors claiming the exchange secretly profited over 60,000 BTC on BitMEX by hedging customer positions during the infamous March 2020 “Black Thursday” COVID crash. Labeling the viral allegation “fake news,” CZ shut it down hard — insisting Binance never traded on BitMEX at all and even tagging co-founder Arthur Hayes to back him up as the drama spreads like wildfire across X.
The resurfaced rumor stems from a widely shared X post accusing Binance of being BitMEX’s most profitable trader during the 2020 meltdown, allegedly raking in 60K+ BTC (worth billions today) by shorting against user longs amid the brutal 50%+ Bitcoin plunge. Black Thursday saw exchanges overwhelmed, liquidations cascading, and conspiracy theories exploding — with some claiming CEXs like Binance hedged exposure on derivatives platforms like BitMEX to offset risks. CZ’s immediate response was merciless: “Fake news. They just making things up randomly now,” adding that BitMEX’s once-a-day withdrawal process makes the claim logistically absurd and that Hayes “would know” Binance wasn’t active there.
The implications cut deep into centralized exchange trust: even years later, these allegations fuel FUD about whether giants like Binance ever profited from user pain through off-platform hedging — raising questions about transparency, reserve proofs, and conflict of interest in a post-FTX world pushing self-custody. For institutions and regulators, it highlights lingering scars from 2020’s chaos, potentially slowing mainstream adoption amid calls for stricter audits and on-chain verification.
Market reaction was swift but contained — Bitcoin dipped fractionally on the resurfaced drama as old ghosts haunted sentiment, with volume ticking up in privacy tools and shorts probing lower. Broader alts shrugged it off in a resilient macro environment, but the episode reinforced caution around CEX counterparty risks.
The crypto community is fiercely divided as always: conspiracy hunters and Binance critics slam CZ’s denial as damage control and demand proof the exchange never hedged during crashes, while loyalists hail it as another baseless smear against the industry’s biggest player.
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Whether these 60K BTC BitMEX claims expose dark exchange secrets or prove to be total fabrication as CZ insists, one thing is brutal: in crypto, old crashes never die — they just resurface to test trust all over again.
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Did Binance really profit 60K BTC on BitMEX during the 2020 crash — or is CZ right that it’s all fake news?
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