Binance pays $283 million in compensation to affected users after the market crash

Key points:

• Binance compensated Earn product customers for $283 million in losses after the market crash on October 10.
• The exchange claims that the market crash occurred before the depegging of USDe, BNSOL, and WBETH assets.
• Binance will update its DePeg protection system and optimize its interface to prevent abnormal prices.

Binance, the world’s largest cryptocurrency exchange by trading volume, announced that it will pay $283 million in compensation to users who suffered losses due to the depegging of assets during the crypto market crash on October 10, 2025. The funds have already been distributed among holders of Binance Earn products, including Ethena USDe, BNSOL, and Wrapped Beacon ETH (WBETH).

The sharp market decline triggered massive sell-offs and a temporary decline in liquidity. As a result, the USDe rate, originally pegged at $1, fell to $0,66 on Binance. Some tokens, including ATOM and IOTX, showed abnormal price fluctuations.

Compensation and restoration of operations

Binance stated that it compensated users for losses due to position liquidations and internal delays in Earn products. Payments were made within 24 hours after the incident.

“Where the de-pegging impacted some users who had their positions liquidated due to holding these assets as collateral, Binance has taken responsibility and has fully covered their losses,” Binance said in a statement.

The exchange emphasized that the crash occurred before the unpegging of assets, refuting rumors that the unpegging was the cause of the crash. According to an internal investigation, the lows for key tokens were recorded at 21:20 and 21:21 (UTC), and the unpegging of assets occurred later, after 21:36 (UTC).

Binance added that futures, spot, and API were functioning stably, and the failures affected only individual modules.

Reasons for abnormal prices and further measures

Based on the results of the investigation, Binance identified three reasons for the short-term market anomalies:

1. Old limit orders were triggered — some of them dated back to 2019 and were activated when liquidity was low.
2. Price display errors — for example, the IOTX/USDT trading pair showed $0 due to a reduced number of decimal places.
3. A sharp market decline — old orders exacerbated the price decline amid a lack of liquidity.

The exchange promised to update the interface and fix technical errors so that users would no longer see “zero” prices.

New user protection measures

Binance will add asset redemption prices to the index calculation to stabilize quotes during future fluctuations. The company will also implement a flexible price range for tokens traded against the dollar, including USDe.

The exchange continues to review user feedback and has stated that it will provide updates on the progress of payments and bug fixes through official channels.

In a press release, Binance emphasized that the cryptocurrency market remains extremely volatile and that users should adhere to responsible risk management principles.