Binance will distribute between USD $4 and $6,000 to users affected during recent collapse
By Hannah Perez
The exchange announced its “Together Initiative” that will distribute a total of USD $400 million to affected users during the historic liquidation event of more than USD $19 billion on Friday.
***
- Binance announces “Together Initiative” that will distribute a total of USD $400 million to affected users.
- It will distribute between USD $4 and $6,000 among those who experienced losses during mass liquidations.
- The crypto market faced record liquidations of almost $20 billion on Friday.
- Binance experienced difficulties during the turbulence, and had already compensated affected users.
🚨 Binance launches its “Together Initiative” after the collapse of October 10.
It will distribute USD $400 million to users affected by massive liquidations.
Each eligible user will be able to receive between USD $4 and $6,000 in USDC.
The crisis caused the loss of almost USD $20 billion… pic.twitter.com/Mf1ToT6w0p
— Diario฿itcoin (@DiarioBitcoin) October 14, 2025
In an effort to restore confidence amid persistent price volatility, Binancethe oldest exchange of cryptocurrencies in the world, has presented its “Together Initiative” to reimburse users affected by last Friday’s massive collapse.
The recovery plan, announced this Tuesday and valued at about USD $400 million, seeks to compensate users who suffered losses due to forced liquidations during the dramatic price drop in the cryptocurrency market on October 10, and support affected institutions, according to an official statement from the company.
Binance responds to its customers after the chaos
The announcement comes days after one of the worst days in the history of cryptocurrencies, when the market lost close to USD $500 billion in total capitalization and Bitcoin plummeted by almost $17,000 in a matter of hours.
The chaos was triggered by President Donald Trump’s announcement to impose a 100% tariff on goods imported from China, evaporating risk appetite in global markets and triggering massive liquidations close to $20 billion in a 24-hour period, according to data from Coinglass. This event wiped out approximately 1.7 million traders, marking possibly the largest episode of its kind in the history of cryptocurrencies.
During extreme turbulence, Binance faced serious operational problemswith users complaining of delays in order execution, glitches in features such as stop-loss, erroneous display of balances and charts, latency in APIs, temporary suspensions of withdrawals, and general freezes on its mobile application and website.
Furthermore, the stablecoin USDe of Ethena It lost its parity with the dollar, falling to 65 cents on the platform, which exacerbated the losses. Other tokens such as BNSOL and WBETH also destabilized, contributing to cascading liquidations.
In initial response, executives at Binanceincluding co-founder and chief customer officer Yi He, publicly apologized over the weekend, stating that “there are no excuses” for the incidents. The exchange also announced a distribution of USD $283 million in two rounds to compensate holders of decoupled tokens, such as USDe, BNSOL and WBETH.
Between USD $4 and USD $6,000 for each affected person
Now, with the “Together Initiative”, Binance delves into these efforts to address the complaints of its affected users.
Of the total USD $400 million to be distributed, Binance said that USD $300 million will go to distributions in the USDC stablecoin of Circlebacked by the dollar, to eligible users who incurred losses from forced liquidations in futures and margin trading. It will apply to those affected between 00:00 UTC on October 10 and 23:59 UTC on October 11.
Each qualified user will receive between $4 and $6,000 in USDC, determined by an assessment of the liquidation loss amount, the loss ratio (which must represent at least 30% of the user’s total net assets, based on a snapshot taken on October 9 at 23:59 UTC), and other factors. The minimum loss threshold is equivalent to USD $50.
USDC distribution will begin in the next 24 hours and is expected to be completed within 96 hours, via the Rewards Hub of Binancewith notifications via app and email. The company warned of possible delays due to workload.
“Together Initiative” distributes USD $400 million
The remaining USD $100 million will be allocated to a low-interest loan fund for severely impacted institutional and ecosystem users, with the goal of “inject momentum into the recovery of ecosystem participants, alleviate liquidity pressures and maintain stable operations”the company indicated in the statement.
Eligible VIP and institutional users can apply through their dedicated account managers, with quick responses and strict confidentiality, the exchange added.
In his statement, Binance emphasized that this initiative does not imply acceptance of responsibility for users’ losses, but rather arises from their commitment to the “focus on the user” and the belief in the long-term development of the industry.”Like other challenging periods in crypto’s short history, we will get through this together, as one industry. “We remain confident in the future of our industry”the company noted, reminding users of the inherent volatility of the market and the need to invest rationally.
The move is an effort to not only reimburse those affected, but also to instill confidence in a market still influenced by geopolitical developments. The price of Bitcoin remains on the bearish side, trading at USD $112,800 with a loss of almost 2% in 24 hours at the time of publication, according to data from CoinGecko. The losses spread to the rest of the market.
This plan comes amid growing scrutiny of centralized exchanges following liquidation events due to a lack of transparency and potential mishandling of data, highlighting the importance of operational resilience and user protection in the crypto ecosystem. Binance reserves the right to modify or cancel the advertisement at any time.
Article written with the help of AI, edited by DailyBitcoin
Image from Unsplash
WARNING: DiarioBitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Investments in crypto assets are high risk and may not be suitable for everyone. Do your research, consult an expert and check applicable laws before investing. You could lose all your capital.
Subscribe to our newsletter
