Binance compensates affected users with USD $283 million after Friday’s chaos
By Hannah Perez
Binance said it paid out around $283 million to users of three assets — USDe, BNSOL and WBETH — that fell in price on the exchange during Friday’s cryptocurrency crash.
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- After extreme turmoil in the crypto market, Binance takes action to care for those affected.
- It said it paid out around $283 million to users of three assets — USDe, BNSOL and WBETH.
- The three tokens were detached from their expected price on Binance, although this did not happen on other platforms.
- Binance users faced issues such as withdrawal suspensions and operational glitches.
🚨 Binance compensates users affected by Friday’s chaos with USD $283 million.
Three assets lost their parity on the platform.
Operational problems caused withdrawal suspensions and failed orders.
Bitcoin saw dramatic declines, losing almost $17,000 in a… pic.twitter.com/EBvm63Xjyy
— Diario฿itcoin (@DiarioBitcoin) October 13, 2025
After extreme volatility in the cryptocurrency market, the exchange Binance has announced the distribution of approximately USD $283 million in compensation for users impacted by token unbindings during last Friday’s crash. This measure responds to losses exacerbated by operational problems on the platform, which occurred amid widespread panic triggered by tariff announcements by the president of the United States, Donald Trump.
On Friday, the crypto market suffered one of its worst days in recent history, with liquidations reaching historic levels close to $20 billion amid a price collapse.
The turbulence began after Trump’s announcement that he would impose a 100% tariff on imports from China, reviving fears of a full-scale trade war. Bitcoin (BTC), which had hit a new high above $126,000 the previous Monday, lost nearly $17,000 in value that day alone, at one point falling below $106,000.
Chaos worsened on Binance
In Binancethe situation worsened when several stablecoins major currencies lost their parity with the US dollar. USDe, the stablecoin of Ethena and the third largest by market capitalization, fell as low as 65 cents on the platform during the chaos. Likewise, the liquid participation token in Solarium issued by BinanceBNSOL, and token Wrapped Beacon ETH (WBETH) decoupled from their expected prices, triggering on-chain liquidations and further losses for investors. traders.
The operational problems in Binance included delays in the execution of orders, failures in functions such as stop lossincorrect display of balances and charts, latency in APIs, temporary suspensions of withdrawals, and general freezes on the mobile app and website for a critical 2 to 4 hours. Users reported failed orders on social networks due to “system errors” which resulted in significant losses, and even accusations of selective position manipulation.
Furthermore, tokens like IOTX and ATOM experienced extreme price movements attributed to historical limit orders that remained open and executed during the sell-off, causing momentary dips. For IOTX/USDT, a displayed value of USD 0 was due to a decimal rendering issue on the website, which Binance plan to correct.
The executives of Binance They took to social media to publicly apologize on Saturday. CEO Richard Teng expressed in X: “I am deeply sorry for all those affected. We don’t make excuses: we listen closely, learn from what happened and commit to doing better“Co-founder Yi He also apologized, regretting the inconvenience caused by market fluctuations and promising case-by-case compensation for those affected by platform errors.
Binance compensates victims
In an official statement posted on his blog on Sunday, Binance He detailed that The compensation of USD $283 million was distributed in two lots and covered verified losses for users of futures, margins and loans using USDe, BNSOL or WBETH as collateralspecifically those impacted between 21:36 and 22:16 UTC.
It also included users with losses from internal transfers or profit redemptions in Binance Earn. He exchange emphasized that the extreme market collapse occurred before the unties, with prices falling to their lowest point between 21:20 and 21:21 UTC, and rejected speculation that problems in Binance will cause the general fall.
Additionally, the exchange announced future preventive measures, such as incorporating redemption prices into index weights for stabilization and establishing a soft price floor on the benchmark index for USDe. Binance indicated that it continues to review additional cases for possible extra compensation.
Meanwhile, Guy Young, CEO and co-founder of Ethena Labscommented in X that he does not consider it necessary to describe the incident as a “decoupling from USDe“, since only one company (Binance) became misaligned, while the pools deeper liquidity markets did not experience abnormal deviations.
Three days after the incident, the market is showing signs of recovery, with Bitcoin rising 2% above USD $114,000 on Monday at press time. The BNB token Binance is up 7% in the last 24 hours and the total cryptocurrency market capitalization is 3.6% higher in 24 hours, according to data from CoinGecko.
Article written with the help of AI, edited by DailyBitcoin
Image from Depositphotos
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