Binance has announced a $283 million compensation program for affected users after last week's technical faults and market crash.
Author: Sahil Thakur
13th October 2025 – Following last week’s severe market crash and brief depegging of key assets, Binance has announced a $283 million compensation program for affected users. The move aims to restore trust and stabilize platform operations after widespread volatility rocked the crypto space.
In an official statement, Binance said it has already distributed $283 million in two separate batches. These payouts target users whose collateralized positions were liquidated and those impacted by internal transfer delays or Earn redemptions.
The compensation covers users involved in futures, margin, and loan products who held USDe, BNSOL, or WBETH between 21:36–22:16 UTC on October 10, when the worst price dislocations occurred.
The chaos followed a massive liquidation wave triggered by U.S. President Donald on Chinese imports. The news rattled investors, causing $7+ billion in liquidations within an hour, mostly from over-leveraged long . plunged to $102,000, dragging the broader market with it.
Binance clarified that its infrastructure remained stable during the crash. However, it acknowledged technical glitches afterward, particularly in the pricing of USDe, BNSOL, and WBETH. These assets temporarily depegged on the platform, though other venues showed much milder deviations.
USDe, for example, dropped below $0.66 on Binance, despite holding near its peg elsewhere. Ethena Labs CEO Guy Young criticized calling this a true depeg, noting that the issue was isolated to Binance’s venue.
According to Binance, part of the extreme price action came from long-dormant limit orders, some dating back to 2019. These orders were triggered during the sell-off when liquidity vanished. As a result, tokens like ATOM and IOTX briefly flashed bizarre prices, with ATOM even falling under $0.01 before rebounding.
Binance also explained that the IOTX/USDT pair appeared to hit $0.00 due to a display bug caused by inadequate decimal rendering. This has since been addressed.
To prevent similar issues in the future, Binance will:
CEO Richard Teng publicly apologized and pledged to enhance risk controls. He emphasized the platform’s commitment to transparency, liquidity, and user protection during volatile times.
Despite the chaos, the market is showing signs of recovery. Bitcoin has bounced back to $114,913, up 3.74% in 24 hours. Binance’s native token BNB has surged 11.8%, while the GM30 Index is up 6.8% on the day.
Binance says some compensation claims are still under review, and more payouts may follow.
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