CZ Cuts Ties with Cathie Wood Amid Shockwaves from a $28 Billion Bitcoin Crash Claim

Allegation and Social Reaction

Cathie Wood of ARK Invest claimed a Binance software error sparked a $28 billion deleveraging that drove Bitcoin’s October 2023 crash. In response, Binance founder Changpeng Zhao quietly unfollowed Wood on X, signalling disagreement without a formal rebuttal. The move drew widespread attention as a rare public rift between two high‑profile crypto figures.

October 2023 Bitcoin Crash

The price fell about 12 % within 72 hours amid rising global interest rates, regulatory uncertainty, and thin order‑book depth. Wood’s analysis added a technical cause, suggesting the exchange’s liquidation engine malfunction triggered the downturn. Traditional narratives had focused on macroeconomic and liquidity pressures.

Expert Assessment of the Claim

Analysts note that a single module failure could, in theory, cascade through linked derivatives markets, but proving direct causality is difficult. Blockchain data showed large transfers from exchange wallets coinciding with the drop, yet no clear precursor to the crash. Binance has denied any such error, emphasizing normal operations at the time.

Industry Implications

The unfollowing highlights tension between TradFi advocates like Wood and CeFi builders such as Binance. It underscores how technical accusations can strain strategic partnerships and affect trust in exchange infrastructure. The incident illustrates the growing role of social‑media signals in executive communication within the crypto ecosystem.