- Wei Zhou said weak trust in centralized exchanges remains a key reason crypto markets continue struggling.
- Star Xu said restoring confidence requires stronger transparency, governance, and long-term risk management.
- Zhou cited U.S. crypto regulation, Big Tech adoption, and China policy shifts as potential market catalysts.
Former Binance Chief Financial Officer Wei Zhou said on July 2 that weakened trust in centralized exchanges remains a major reason crypto markets continue struggling. His comments, later supported by OKX CEO Star Xu, linked the prolonged downturn to the October 2025 liquidation event, exchange transparency concerns, and capital shifting toward artificial intelligence investments.
October Crash Remains a Key Concern
Wei Zhou said large crypto investors suffered heavy losses during the October 10 and 11, 2025 liquidation event. He added that many traders still question whether major exchanges can prevent similar disruptions during unexpected market-moving announcements.
According to Zhou, transparency concerns surrounding Binance continue weighing on institutional confidence. He also pointed to the strong performance of AI hardware stocks, saying many investors currently find better returns outside digital assets.
His comments followed months of market weakness after Bitcoin declined from previous highs. The broader downturn also coincided with nearly $5 billion in ETF outflows and tighter financial conditions across global markets.
Star Xu Stresses Rebuilding Trust
Responding publicly, OKX CEO Star Xu said trust remains the foundation of every financial market. He added that restoring damaged confidence requires years rather than days.
Xu described October 11 as a reminder that exchanges must prioritize transparency, governance, and sound risk management. He also said placing short-term corporate interests ahead of users ultimately harms the wider industry.
Meanwhile, reports surrounding the October event showed roughly $19 billion in leveraged positions were liquidated across global derivatives markets. During the period, Binance experienced internal processing delays under heavy trading activity.
Debate Expands Beyond Exchange Operations
Binance has rejected claims that its systems caused the broader market decline. The exchange argued the selloff resulted primarily from macroeconomic developments, including U.S. tariff announcements that triggered widespread deleveraging.
The company also highlighted more than $600 million in user compensation after the event. That package included reimbursements tied to pricing deviations involving USDe, BNSOL, and WBETH.
Looking ahead, Zhou identified three conditions for renewed market strength. He cited passage of the U.S. Clarity Act, blockchain adoption by Google and Meta, and easier digital asset policies in China as important developments.
