How Predatory Parasites ‘CZ and Binance’ Are Eating Crypto from Inside

Key Highlights

Binance is converting its $1 billion SAFU fund (user protection reserve) from stablecoins to Bitcoin amid a market crash (BTC down 40% from ATH), starting with $100M. Critics call it opportunistic profit-seeking rather than genuine security/
CZ pleaded guilty in 2023 to AML violations enabling billions in illicit flows (including to terrorists). After a short prison term, he received a Trump pardon in 2025 amid pay-to-play allegations.
Binance is blamed by OKX CEO and other industry experts for the October 10, 2025 crash ($19B liquidated) due to reckless USDe campaigns. Combined with past dramas, it fuels widespread distrust and viral X backlash.

In the wild, unpredictable world of cryptocurrency, chaos isn’t just a bug—it’s the main feature. One day you will be vibing and the very next; prices swing like pendulums on steroids, projects rug-pull overnight, and regulatory hammers fall with the subtlety of a sledgehammer.

But nothing embodies this madness quite like Binance and its enigmatic founder, Changpeng Zhao (better known as CZ). Just when you thought the drama had peaked with accusations on Binance over its alleged role in the October 10 crash, the exchange dropped another bombshell, which seems to be an industry-friendly move but it is actually a camel’s nose.

On January 30, Binance announced that it is converting the $1 billion Secure Asset Fund for Users (SAFU) from stablecoins into Bitcoin, right as BTC slumps to multi-month lows! Is this a savvy hedge against fiat volatility, or a cynical play to profit from the dip at users’ expense?

SAFU Funds moving into Bitcoin: Why now?

As someone who’s watched this space evolve from Bitcoin’s early days to today’s prediction markets frenzy, I’ll say it straight: this move reeks of opportunism, and it’s emblematic of the deeper rot in centralized exchanges like Binance.

If we look at it historically, the funds were first sitting majorly in BNB, partly in BUSD and Bitcoin. Later, the team decided to move it all to USDC in April 2024, following community criticism. Now, adjusting for the third time, the exchange is moving all of it (nearly $1 billion) into Bitcoin—just when the broader market crash appears—”opportunistically” as we reported intentionally.

What’s SAFU though?

Launched in July 2018, this emergency fund was Binance’s way of assuring users that their assets were protected in case of hacks or operational failures. It is regularly funded by a slice of trading fees, now growing into a $1 billion buffer, mostly in stablecoins like USDC for stability.

The idea was simple: “Funds are SAFU,” as CZ famously tweeted during a system outage, turning it into a meme that reassured millions. But here’s the kicker—despite its noble purpose, SAFU has been tapped only once, in a minor incident years ago, leaving questions about its real utility.

Now, with Bitcoin trading at depressed levels, Binance announces a full conversion to BTC over 30 days, starting with an initial $100 million batch. They promise to rebalance if BTC’s value dips below $800 million, but let’s be real: this isn’t about protection; it’s about positioning Binance to ride the next bull wave while users foot the volatility risk.

Why now? Crypto markets are in turmoil, with Bitcoin down 40% from its all-time high. At this time, converting stable assets to BTC when it’s “down” screams bottom-fishing. Binance claims it’s for long-term resilience, but skeptics—and there are plenty—see it as a way to juice profits.

After all, if BTC rebounds, that $1 billion becomes a windfall for the exchange, not directly for users. And if it tanks further? Well, SAFU’s there to cover losses, but the optics are terrible.

This comes amid a chorus of X posts lambasting CZ and Binance for everything from market manipulation to enabling scams. One viral thread calls CZ “calculated” in scamming everyday people, while another ranks him atop a “crypto crime tier list.” It’s not just noise; it’s a symptom of eroding trust in the platform that handles more volume than anyone else.

The history of CZ: a wolf in sheep’s clothing?

CZ’s “hideous history,” as some call it, only amplifies the skepticism. Born in China and raised in Canada, Zhao built Binance from a Shanghai startup in 2017 into the world’s dominant exchange, amassing a fortune estimated to be around $80 billion. But, as any billionaire, his success came with shadows.

In 2023, CZ pleaded guilty to violating U.S. anti-money laundering laws, admitting Binance allowed terrorists, drug traffickers, and ransomware gangs to launder billions. Prosecutors in the U.S. highlighted how the platform welcomed criminals, with one compliance officer reportedly joking about “washing drug money.”

Zhao served four months in prison, though merely a slap on the wrist compared to Sam Bankman-Fried’s 25 years for FTX’s fraud. Then, in October 2025, President Trump pardoned him, citing no “identifiable victims” and framing it as Biden-era overreach.

Critics called it “disgusting” pay-to-play, especially after reports of Binance’s $2 billion investment in Trump’s World Liberty Financial stablecoin, but well that’s a whole another story.

Zhao’s post-pardon life? Back to influencing crypto from his Dubai base, a hub for the ultra-rich and, if not all, some shady figures. Dubai’s allure for CZ isn’t hard to see. No extradition treaty with the U.S. made him a flight risk during his trial and judges twice blocked his return there.

The emirate’s lax regulations and crypto-friendly vibe attract everyone from Russian oligarchs evading sanctions to alleged fraudsters. CZ’s residence there fueled suspicions of criminal associations, though he denied any wrongdoing.

Binance’s alleged role in Money Laundering

While CZ’s story speaks of his personal quests, Binance’s past speaks of volumes with the U.S. Treasury officials confirmed in the past that the exchange funneled money to Hamas, Al-Qaeda, and ISIS.

A 2025 lawsuit by Oct. 7 Hamas attack victims accuses Binance of aiding over $1 billion in terrorist transactions, even after U.S. warnings. Zhao’s lawyers argue no “special relationship” with groups like Hamas, but the allegations stick: Binance prioritized growth over compliance, becoming a “conduit for illicit funds.”

CZ Vs Crypto People

Then there’s the drama reel. CZ’s feud with FTX‘s Sam Bankman-Fried (SBF) was legendary back then. In November 2022, CZ tweeted about dumping $500 million in FTT tokens, triggering a bank run that collapsed FTX and wiped out $8 billion in user funds. He signed a non-binding acquisition letter, only to back out after “due diligence,” leaving SBF to face fraud charges.

Fast-forward to Hyperliquid: As the decentralized exchange surged in 2025, eating Binance’s perps market share, CZ launched and promoted rival Aster, which was backed by his family office YZi Labs. Hyperliquid’s founder accused Binance of underreporting liquidations during crashes, while CZ touted Aster’s privacy features as superior. Competition? Sure. But whispers of sabotage linger, especially after reports Circle was buying Hyperliquid’s token before Aster’s push.

The WazirX saga is another black mark. Binance announced acquiring the Indian exchange in 2019, but in 2022, CZ denied it ever happened, citing incomplete docs. When WazirX suffered a $234 million hack in 2024, Binance washed its hands, claiming no control—despite WazirX’s insistence on legal ties. Users lost big, and the feud escalated to litigation by 2025. This denial game eroded trust, painting Binance as evasive when convenient.

Binance’s alleged role in October 10 crash

All these stories sound dramatic enough but nothing captures the current backlash like the October 10 crash. This “10/10 nightmare” wiped out over $19 billion in liquidation cascade. The embryonic point of this largest ever crash was said to be a technical glitch on Binance.

Apparently, Binance is the largest crypto exchange with highest liquidity, and such occurrences on the platform will definitely shake the broader crypto market.

OKX CEO Star Xu blamed it squarely on Binance’s “irresponsible” USDe APY campaign, which looped leverage without limits, turning a minor shock into systemic failure. Xu called it worse than FTX’s collapse, with cascading depegs and near-zero token prices.

However, CZ dismissed it as FUD, attributing it to tariffs and leverage, not Binance errors. But users reported their sell orders executing while buy orders failing, fueling manipulation claims. Binance compensated $600 million, but critics say that’s peanuts compared to the damage.

Recent callouts to CZ

Given all these feuds, CZ was all over X (formerly Twitter) and crypto media in the past three weeks. A number of industry leaders called out that the crypto markets are not functioning the same as they were before the October 10 crash. Recent X posts amplify the vitriol, with one user calling CZ a “net negative” since 2021, while another accuses him of destroying crypto alongside Trump.

Another article paints Binance as predatory, liquidating its own users weekly via volatility engineered with partners like Wintermute. And Justin Sun’s ex-girlfriend’s “Epstein files” tease more dirt on CZ’s circle. Even semantic searches reveal viral exposes on Binance scandals since 2024.

While CZ has been around in the crypto space since a while now, he has been at the center of “a lot of” controversies. Not all crypto entrepreneurs are speaking against him currently but the wrath of users is largely visible within discussion on X.

Final takeaway

The crypto landscape has long argued for decentralization over CZ’s centralized empire. Binance’s stark dominance creates a single point of failure, as the October 10 crash showed.

At this point, CZ’s pardon and SAFU pivot feel like rewards for bad behavior, not redemption. Crypto needs transparency, not egos. If we let exchanges like Binance game the system, the chaos will only worsen.

It’s time to decentralize or die trying.

Also read: FTX Ghosts Return as Binance Faces Withdrawal Halt Amid Bitcoin Crash

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.