Key Highlights
- An anonymous X user claims that Binance was the most profitable entity on BitMEX, earning over 60,000 BTC by allegedly hedging client positions during COVID-19 crash.
- Binance Co-Founder Changpeng Zhao (CZ) labeled the claim “fake news,” asserting that Binance never traded on BitMEX.
- Neither Arthur Hayes nor anyone else from BitMEX leadership have yet responded to the heated debate on X.
Changpeng Zhao (aka CZ), the Co-Founder of Binance and one of the most influential crypto personalities, has firmly rejected a resurfaced claim that his exchange secretly made massive profits by hedging customer positions on rival platform BitMEX ahead of the March 2020 COVID-19 market crash.
The allegation, made by anonymous X user going by the username Flood, describes Binance as “the most profitable trading entity on BitMEX,” netting more than 60,000 Bitcoin during the 2020 Covid crash.
The user claimed that Binance executed trades through client-position hedging during the sharp downturn on March 12, 2020, when Bitcoin plunged roughly 50% in a single day. He also called it the largest single withdrawal and highest recorded PnL (profit and loss) figure in BitMEX history, sparking speculation about insider advantages or unethical practices.
Quoting the post, CZ clarified that its ‘Fake news’ and his exchange never traded on BitMEX. He also tagged Arthur Hayes, the Founder of BitMEX crypto exchange, calling him a friend, stating that they process withdrawals only once a day.
CZ also hinted at recent slaggings against him and Binance, what the crypto community calls it ‘FUDing.’ “They just making things up randomly now. Not sure what their goal is,” he emphasized. “I feel bad for the people believing this without seeing any proof.”
As of now, neither BitMEX nor other parties mentioned have publicly commented on the latest revival of the claim. The episode highlights how old stories can resurface on social media, especially when Bitcoin hovers near key psychological levels and traders hunt for explanations behind price action.
Also read: Coinbase Users Hit by Trading Disruption: Fix Deployed
