Binance CEO Denies USDe Depeg Caused October 10 Market Crash

Binance Co-CEO Richard Teng has firmly denied claims that a depegging of Ethena’s USDe stablecoin on Binance triggered the October 10 market crash. The denial comes amid scrutiny from industry peers and investors, emphasizing the need for clarity in crypto market dynamics.

What Happened

On February 12, 2026, at the Consensus Hong Kong conference, Binance Co-CEO Richard Teng addressed accusations that Binance was responsible for the “10/10” market collapse. Allegations had surfaced from OKX CEO Star Xu, blaming Binance’s leverage strategies and USDe promotions for the $19 billion liquidation. Teng refuted these claims, attributing the crash to broader macroeconomic shocks, including a significant drop in the U.S. equity market following President Trump’s tariff announcement on Chinese goods.

Why Does It Matter?

The incident underscores the fragility of crypto markets in the face of macroeconomic events. Teng’s defense highlights a critical distinction between systemic failures and infrastructure strains. While USDe briefly fell to 65 cents on Binance, it remained stable on other platforms, suggesting Binance’s infrastructure faced unique pressure. This highlights the importance of robust exchange systems to prevent market disruptions.

Investor Takeaway

Reactions and Competitive Context

Despite the volatility, Binance committed $600 million to support affected users, setting a precedent in user protection. This move challenges other exchanges to enhance transparency and user compensation mechanisms. Institutional interest remains strong, indicating confidence in the crypto ecosystem’s resilience amid geopolitical influences.

What’s Next?

Looking forward, Binance focuses on strengthening its infrastructure to withstand future shocks. Regulatory harmonization and infrastructure enhancements are key priorities to ensure stability and trust in the platform. As the industry evolves, exchanges must adapt to maintain their roles as reliable hubs for digital liquidity.

Investor Takeaway

As geopolitical factors continue to influence markets, the crypto industry must remain vigilant and adaptable to maintain growth and stability.