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Binance has announced it will compensate users a total of $283 million following collateral asset depegging incidents during the October 10 market crash. The exchange blamed a mix of thin liquidity, long-dormant limit orders dating back to 2019, and UI display errors. Sponsored Sponsored Binance Pays $283 Million To Affected Users: All You Need to Know In the official statement shared late Sunday, the exchange articulated that the event was “macro-driven volatility,” not a platform failure. Binance acknowledged that global macroeconomic stress led to concentrated sell-offs by institutional and retail traders, triggering sharp price declines across crypto markets. While users speculated that Binance’s systems might have malfunctioned, the exchange said its futures and spot matching engines, as well as API trading, remained fully operational throughout the event. “Forced liquidation volume on Binance accounted for a relatively low proportion of total trading activity,” read an excerpt in the announcement. Still, Binance confirmed that some assets, including USDe, BNSOL, and WBETH, briefly depegged due to the market shock. This situation liquidated some users’ positions that had used these tokens as collateral. The company said it moved quickly to compensate affected users within 24 hours, distributing two batches of payments totaling approximately $283 million. “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. Compensation has been distributed in two batches, totaling approximately USD 283 million,” the exchange said. Sponsored Sponsored What Really Happened? Legacy Orders and “Zero Price” Glitches Further, in a detailed post-mortem, Binance revealed that part of the confusion stemmed from legacy limit orders still active on certain spot pairs, some of which had been open since 2019. During the sell-off, low liquidity conditions caused these old limit orders to execute at…

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Filed under: News - @ October 12, 2025 7:22 pm