Binance Compensates Users with $283M After Crypto Market Crash and Stablecoin Depegs

Highlights:

• Binance compensates users with $283 million package to mitigate losses, which emanated from the platform’s technical glitches.
• The trading platform rolled out the compensation in two batches with strict eligibility criteria for affected users.
• The crypto exchange also outlined reasons for assets’ extreme price movements on the platform.

World’s largest crypto trading platform, Binance, has rolled out two batches of compensation totaling $283 million. The exchange announced the move in an official statement on October 12, detailing plans to address losses from technical glitches on its platform.

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On October 11, Yi He, Binance’s co-founder, hinted at the compensation plan, which she described as one of the biggest in history. According to an X post, the co-founder apologized for the technical glitches, adding that only affected users will benefit from the compensation initiative.

The announcement follows a major crypto market crash on October 11, with over $10 billion liquidated in an hour. On October 11, a series of sudden global macroeconomic events triggered intense volatility across the crypto market, which resulted in Bitcoin dropping to as low as $102,000. Other cryptocurrencies also plummeted as panic selling intensified.

💥 BREAKING:

BINANCE COVERS $283 MILLION TO USERS WHO LOST FROM $BNSOL, $WBETH and $USDE pic.twitter.com/HsCY2q2hFr

— ᴛʀᴀᴄᴇʀ (@DeFiTracer) October 13, 2025

Binance Compensates Users and Clarifies Platform’s Situation During the Crash

According to Binance’s official statement, the trading platform’s infrastructure, including its futures, spot, and Application Programming Interface (API) trading, remained functional during the crash. Binance also dismissed claims that it caused a significant portion of the forced liquidations during the market slump.

Binance explained:

 “The forced liquidation volume processed by the Binance platform accounted for a relatively low proportion of the total trading volume, indicating that this volatility was mainly driven by overall market conditions.”

Binance, however, admitted that it started experiencing brief technical glitches and temporary depegs in some assets after the market crash at 21:18 (UTC). The exchange attributed the glitches to extreme market swings, adding that it fully compensated affected users within 24 hours.

BINANCE COMPENSATES USERS $283 MILLION AFTER THREE CRYPTO ASSETS DE-PEG

Binance has paid out $283 million in user compensation following the de-pegging of three crypto assets on Friday, reaffirming its commitment to user protection and market stability. pic.twitter.com/MJg0aXX8hd

— Crypto Town Hall (@Crypto_TownHall) October 13, 2025

$283 Million Compensation Plan

During the glitch period, some Binance Earn  Products tied to USDE, BNSOL, and WBETH suffered depegging issues. Consequently, some users faced liquidations due to holding these assets as collateral. In response, Binance took responsibility for these users’ losses and included them in its $283 million compensation plan.

Binance also compensated users who experienced delays in internal transfers and Earn product redemptions. According to the exchange, the delay prevented these users from topping up their margins promptly.

The trading platform added:

“We will continue to maintain full transparency and continuously update the community on the compensation progress via official channels to ensure that every affected user’s case is properly addressed.”

Binance Explains Visual Glitch Behind Zero Prices During Market Slump

Binance also addressed community concerns over the unusually low prices seen in some spot trading pairs during the market slump. The exchange explained that the abnormal price movements were caused by some old limit orders from 2019. In some cases, like the IOTX/USDT trading pair, Binance adjusted the number of decimal places for price movements. This caused certain token prices to display “Zero” on the user interface. The exchange described this as a visual glitch and not a real zero-price event.

Going forward, Binance plans to improve its user interface to prevent similar display errors. The exchange added that it will implement these updates quietly, without public announcements. Meanwhile, the platform’s API services remain unaffected and will continue working optimally.

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