Binance Co-CEO Richard Teng Says Oct. 10 Crypto Liquidations Were Driven by Macro Shocks, Not Binance

Key TakeawaysBinance Co-CEO Richard Teng says the Oct. 10 crypto liquidation event was driven by macro and geopolitical shocks, not BinanceAround $19 billion in crypto liquidations occurred across all centralized and decentralized exchangesNearly 75% of liquidations happened around 9:00 p.m. ET, coinciding with a stablecoin depegging and transfer slowdownsTeng says no evidence of mass withdrawals was found on Binance, which supported affected usersDespite muted retail demand, institutional and corporate participation remains strong, according to TengBinance Did Not Cause the Oct. 10 Crypto Crash, Richard Teng SaysRichard Teng, Co-CEO of Binance, said the sharp crypto market sell-off on Oct. 10—often referred to as the “10/10” event—was not caused by Binance, but by broader macroeconomic and geopolitical shocks that triggered liquidations across every major exchange.Speaking at Consensus Hong Kong, organized by CoinDesk, Teng said the event saw roughly $19 billion in crypto liquidations, compared with far larger losses in traditional markets the same day.“The U.S. equity market alone lost about $1.5 trillion in value, with roughly $150 billion in liquidations,” Teng said. “Crypto is a much smaller market, and liquidations happened across all exchanges, centralized and decentralized.”Liquidations Concentrated Around Stablecoin DepeggingAccording to Teng, around 75% of the crypto liquidations occurred at approximately 9:00 p.m. Eastern Time, coinciding with two unrelated and isolated issues: a temporary stablecoin depegging and slower-than-usual asset transfers.He stressed that these issues were not unique to Binance and did not reflect systemic problems with the exchange.Trading data from Binance showed no signs of mass withdrawals, Teng said, adding that the company actively supported users affected by the extreme market conditions—support that, he noted, was not uniformly provided across the industry.“The data speaks for itself,” Teng said.Macro Shocks, Not Exchange Failures, Drove the Sell-OffTeng attributed the Oct. 10 volatility to a combination of global macro pressures, including:New U.S. tariffs on ChinaChina’s announcement of rare earth metal export controlsBroader uncertainty around interest rate policy and geopoliticsThese factors also weighed heavily on traditional markets, reinforcing the link between crypto assets and global risk sentiment.“At the macro level, there is still uncertainty around interest rate movements,” Teng said. “Geopolitical tensions continue to weigh on risk assets, including crypto.”Institutional ‘Smart Money’ Still Entering CryptoDespite short-term volatility and weaker retail participation, Teng said institutional and corporate demand remains resilient.He noted that while retail demand has softened compared to last year, long-term industry participants understand that crypto markets move in cycles.“What matters is the underlying development,” Teng said. “Retail demand is more muted right now, but institutional and corporate deployment is still strong.”According to Teng, institutions continue to enter the sector even during downturns—evidence that “smart money is deploying” despite macro uncertainty.Binance Trading Activity Remains StrongTeng also highlighted Binance’s scale and liquidity, noting that the exchange facilitated approximately $34 trillion in trading volume last year and serves around 300 million users globally.He reiterated that Binance remains focused on market integrity, user protection, and long-term industry growth as crypto adoption continues to evolve.