Richard Teng Says Oct. 10 Crypto Crash Was a Macro Shock

• Teng said US tariffs and China export controls sparked cross market liquidations not exchange failures.

• Crypto saw about 19B in liquidations versus 150B in US equities during the Oct. 10 shock.

• Binance paid 300M in compensation and cited stable user activity despite volatility.

Following the Oct. 10 crypto selloff, yet Binance leadership says the cause was global. On Feb. 12, 2026, in Hong Kong, Richard Teng addressed the episode at Consensus Hong Kong. He said macro policy shocks, not exchange failures, drove widespread liquidations across global markets.

Macro Shock Behind the Mass Liquidations

According to Teng, the selloff followed major policy announcements that rattled risk assets. He said the U.S. imposed 100% tariffs, while China introduced rare earth controls. As a result, U.S. equities lost about $1.5 trillion in value that day.

Notably, he said U.S. equity markets alone saw roughly $150 billion in liquidations. By comparison, crypto liquidations totaled about $19 billion. Teng stressed that crypto liquidations occurred across all exchanges, not on any single platform.

He added that roughly 75% of crypto liquidations clustered around 9:00 p.m. ET. Therefore, the timing matched broader market stress rather than platform-specific issues. He described the event as a market-driven liquidation cycle rather than a disorderly crash.

USDe Depeg and Transfer Delays Addressed

Following the main liquidation wave, two separate issues emerged. Teng said one involved a temporary USDe price deviation. Another involved slower asset transfers for some users facing liquidation risk.

However, he said both issues happened after most liquidations concluded. Therefore, they did not trigger the broader selloff. Still, Binance accepted responsibility for those isolated problems.

Teng said Binance issued about $300 million in compensation. Additionally, the exchange allocated another $300 million through a shared-gain program. He clarified that some users expected full liquidation coverage, which the firm did not promise. He reiterated that traders must bear normal market risks.

Market Data and Broader Conditions

Teng also addressed concerns about platform stability. He said Binance serves about 300 million users and processed roughly $34 trillion in trading volume last year. Moreover, he said trading data showed no signs of mass withdrawals during the episode.

He added that crypto prices continue to reflect global uncertainty. These include interest rate expectations and geopolitical tensions. However, he noted that institutional and corporate participation remains strong, even as retail activity softens.