Binance has announced its plans to compensate some users who lost funds during the market-wide crash on Friday, October 10. The world’s largest cryptocurrency exchange by trading volume acknowledged a price depeg incident, which led to forced liquidations for some traders.
Affected Users To Receive Compensation In 3 Days: Binance
In an October 11 post on the X platform, Binance co-founder and chief customer support officer Yi He confirmed that some users encountered issues with their transactions due to significant market fluctuations. While apologizing to customers, the exchange executive asked the affected customers to reach out to the customer service to lodge their complaints.
After Friday’s market bloodbath, some users took to the X platform to complain about the forced closure of their trade positions on the Binance exchange. According to the cryptocurrency exchange’s explanation, these issues were caused by a price depeg involving Ethena’s USDe, BNSOL, and WBETH, as the market fluctuated and users flooded the trading platform.
Binance’s He noted that account activity of each user will be reviewed individually before the compensation will be released accordingly. However, it was also stated that losses due to market fluctuations and unrealized profits are not eligible for compensation.
He wrote on X:
The reason Binance is Binance is that we never shy away from problems. When we fall short, we take responsibility—there are no excuses or justifications. We are committed to serving every user to the best of our ability, and we will manage what we are responsible for.
Binance announced on its website that the affected users will receive their compensation within 72 hours. This reimbursement will reportedly cover the difference between the liquidation price and market price at midnight on October 11.
Trump Slaps China With 100% Tariff, Crypto Market Crashes
As already mentioned, the Binance issue came up due to severe fluctuations in the cryptocurrency market. This increased volatility came after United States President Donald Trump declared plans to impose 100% tariffs on all Chinese goods by November 1.
Source: @realDonaldTrump on Truth Social
As a result of this decision, Bitcoin, the largest cryptocurrency by market cap, witnessed a swift crash to around $101,500. Meanwhile, the crypto market recorded nearly $20 billion in long liquidations—the largest single-day liquidation event in history—following the declaration.
As of this writing, the price of Bitcoin is hovering around the $111,000 mark, reflecting an almost 10% decline in the past seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
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