BitMEX has been dragged into a viral claim suggesting that Binance secretly made massive profits during the March 2020 market crash, a charge strongly denied by Changpeng “CZ” Zhao, the exchange’s founder. The rumor alleges Binance hedged user trading activity on BitMEX during the so-called “Covid crash,” supposedly earning more than 60,000 bitcoin. CZ has dismissed the story as completely fabricated and technically impossible.
The accusation gained traction on social media after being shared by Flood, CEO of fullstack_trade on Hyperliquid. According to the post, Binance used BitMEX as a hedge during the violent liquidation cascade in March 2020, one of the most chaotic moments in crypto market history. CZ responded publicly, calling the claim “fake news” and saying people are spreading rumors without evidence.
“Binance never traded on BitMEX,” CZ said, adding that the story doesn’t line up with how exchanges actually operated at the time. He also pointed to a key operational detail: back in 2020, BitMEX only processed withdrawals once per day. That setup, he argued, would have made it nearly impossible for any exchange to run real-time hedging strategies of the size being claimed during a fast-moving market crash.
Others in the crypto community echoed that view. Traders and commentators noted that moving or locking up 60,000 BTC during a black swan event would have been highly impractical, especially when withdrawals weren’t processed instantly. Some suggested the number may be a distorted version of old market rumors rather than something grounded in actual transaction records. BitMEX itself has reportedly said there is no data showing such flows ever took place, and highlighted that it has since upgraded its infrastructure to support real-time withdrawals.
Still, not everyone is convinced by Binance’s dismissal. Critics argue that Binance has played a role in several major market blowups over the years, pointing to controversies around FTX and Terra (LUNA) as examples of how powerful players can influence market outcomes. Supporters of CZ, however, say this episode looks like another round of fear, uncertainty, and doubt — where old anecdotes and partial memories get repackaged into dramatic conspiracy theories.
The debate highlights a broader issue in crypto: cross-exchange flows are often opaque, and the industry still relies heavily on social media narratives rather than audited, transparent disclosures. In fast-moving markets, rumors can spread faster than facts, and once a story goes viral, it’s hard to fully put the genie back in the bottle.
As this argument plays out online, the market continues to move with broader risk sentiment. Bitcoin has been hovering around $68,280, with recent swings between roughly $64,760 and $71,450. Ethereum is trading in the low-$2,000 range, while Solana is changing hands near $78–81 after a modest pullback.
Whether the BitMEX hedge story fades or fuels more debate, it’s a reminder that in crypto, narratives can be almost as volatile as prices themselves.
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