Binance’s CZ Denies Claims of 60,000 BTC Hedging on BitMEX During 2020 Crash

Highlights:

• Binance’s CZ rejects 60,000 BTC BitMEX hedge claim, calling it “fake news.”
• BitMEX co-founder Hayes said daily withdrawals made such large hedges impossible.
• Critics still link Binance to past crypto crashes like FTX and LUNA.

Binance founder Changpeng Zhao, also known as CZ, denied claims that his exchange secretly earned over 60,000 BTC by hedging client risk on BitMEX during the March 2020 crash. He called the report “fake news” and said it was just another rumor circulating in crypto.

The issue started after Flood, CEO of fullstack_trade on Hyperliquid, claimed that Binance had hedged trades on BitMEX during the COVID-era liquidation wave. CZ replied directly, saying, “Fake news. They just making things up randomly now. Not sure what their goal is. I feel bad for the people believing this without seeing any proof.” He added clearly, “Binance never traded on BitMex.”

4. Fake news. They just making things up randomly now. Not sure what their goal is. I feel bad for the people believing this without seeing any proof. 😂

Binance never traded on BitMex. @CryptoHayes (a friend) would know. BitMex processes withdrawals only once a day (as far as I… pic.twitter.com/qFBiyE1Lji

— CZ 🔶 BNB (@cz_binance) February 13, 2026

Zhao Clarifies BitMEX Limits Made Large Real-Time Hedge Impossible

CZ also highlighted BitMEX’s operational limits at the time. He mentioned co-founder Arthur Hayes and explained that BitMEX only allowed withdrawals once a day. This meant it was impossible for anyone to do a real-time hedge of that large size.

Market participants quickly joined the discussion, and many said Binance could not have made such a hedge. Commentator Murtuza J. Merchant explained that BitMEX only allowed withdrawals once a day in 2020, so a real-time hedge of that size was impossible. He also added that no one would lock 60,000 BTC in a manual multi-sig during a crash. He suggested that the number was probably a mistaken memory of past events, not actual trades. 

Exactly. BitMEX’s once-a-day withdrawal window back in 2020 made it impossible for an exchange to use it for a real-time hedge of that size. No entity would trap 60,000 BTC in a manual multi-sig during a black swan crash. That 60k figure is likely just a garbled memory of old… https://t.co/qCkTDtrvcQ

— Murtuza J Merchant (@murtuza_merc) February 13, 2026

Binance Criticism Sparks Skepticism Over Unverified Claims

Not everyone agreed with CZ, and some critics spoke out. One user, called Broly, said Binance played a big role in every major crypto crash. He mentioned FTX, LUNA, before withdrawals stopped, and other market events. This shows that some people are still skeptical about Binance. While many rejected the hedge claim, others think it fits a pattern of controversy around the exchange. The episode was mocked as fear, uncertainty, and doubt. But it also showed how unclear memories, cross-exchange flows, and past issues can quickly turn into conspiracy stories.

Recently, Zhao defended Binance against critics blaming it for market drops. On X, he said traders should take responsibility for their own choices. He added that while Binance isn’t perfect, many now check negative news carefully, since much of it is false.

Not saying we are perfect, but at this point, smart people actually triple check any negative "news" on Binance.

They are just making stuff up.

Words like "blame" are designed to only attract people who are unwilling to take responsibility for their own actions. pic.twitter.com/iP2ovRrRiK

— CZ 🔶 BNB (@cz_binance) February 10, 2026

The controversy emerged as digital assets were seen to have steady trading activity. Bitcoin was trading at $66,916, ranging from $64,760 to $71,450 in 24 hours. Ethereum was trading at the low $2,000s, with estimates ranging from $1,940 to $2,100. Solana maintained its position at the range of 78 to 81 dollars after a minor correction from its recent peak. These figures indicate the strength of major cryptocurrencies despite the discussions surrounding the exchanges. The cryptocurrency market is always reacting to rumors, but the prices indicate the focus is on bigger economic indicators.