The post Binance Issues $283 Million in Investor Compensation Amid Market Crash and Stablecoin Depegs appeared on BitcoinEthereumNews.com.

Binance has announced a $283 million compensation program for investors. This follows last week’s market crash and temporary depegging of some stablecoins.  Binance Announces Compensation For Investors In an official statement, Binance announced a $283 million two-phase compensation plan. This will cover users whose positions were liquidated due to the depeg events and those impacted by internal transfer or redemption delays. This comes after the crypto market crash on Friday. The panic led to more than $7 billion in liquidations within an hour. It is also worth noting that most of them came from leveraged long positions. The sell-off followed President Donald Trump’s announcement of plans to impose high tariffs on Chinese imports. This raised concerns about a possible new trade war. Bitcoin fell to $102,000. Many other coins have also lost value. The exchange clarified that the platform’s core infrastructure remained operational throughout the crash. The exchange attributed the extreme volatility primarily to macroeconomic conditions, not internal system faults. However, the company acknowledged that several technical glitches occurred afterward. This coincides with the temporary depegging of assets such as USDe, BNSOL, and WBETH. These assets were used as collateral in Binance Earn products. Some users were forced to liquidate due to price swings. Binance CEO Richard Teng had publicly apologized, acknowledging the error. He restated that regaining user trust and making sure that similar problems are avoided are the exchange’s top priorities. In response to community concerns about market manipulation, the exchange shared that some severe price declines on specific spot pairs were caused by long-standing limit orders that had been in effect for years. These dormant orders executed against sell-offs during the liquidity crunch, momentarily distorting market prices. Crypto Market Begins to Recover The crypto market has started its recovery after President Donald Trump cooled down tariff threats…

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Filed under: News - @ October 13, 2025 5:22 am