ARK Invest CEO Cathie Wood said on May 7, 2026 that Binance was not responsible for the October 10 flash crash. Addressing Binance founder CZ directly, Wood clarified that while a software glitch did occur, Binance itself was not the trigger behind the sharp market event.
Earlier comments fueled debate
The clarification drew attention because Wood had previously connected the crash to Binance in a January 26 interview with FOX Business. In those earlier remarks, she said a software glitch on Binance led to a $28 billion deleveraging event. That claim quickly sparked debate across the crypto industry, with market participants questioning what actually caused the crash and how much responsibility, if any, should be assigned to the exchange.
Separating the glitch from the trigger
Wood’s latest statement draws a clearer line between the presence of a technical malfunction and the direct cause of the flash crash. In other words, she is not denying that a software issue existed, but she is explicitly saying Binance should not be identified as the party that triggered the event. The updated explanation effectively revises how her earlier comments were interpreted by parts of the market.
For crypto traders and industry observers, flash crashes usually involve a mix of leverage, liquidity, and trading infrastructure. Wood’s clarification suggests that assigning blame for the October 10 flash crash requires a more careful reading of the facts rather than relying on initial assumptions formed during the first wave of commentary.