USDe Depeg on Binance: Was It a Coordinated Attack?
The post USDe Depeg on Binance: Was It a Coordinated Attack? appeared on BitcoinEthereumNews.com.
On October 10, 2025, Binance users watched their accounts drain as three digital assets lost value in minutes. USDe, a stablecoin designed to stay at $1, crashed to $0.65. Two other tokens—BNSOL and WBETH—also plummeted. Within 40 minutes, nearly 1.7 million traders were liquidated, wiping out $19.3 billion across the crypto market. Now analysts are asking: was this a simple market crash, or something more calculated? The Oracle Problem The root of the disaster lies in how Binance determined prices for these tokens. Unlike other exchanges, Binance used its own internal orderbook—essentially the buy and sell orders on its platform—to set prices for margin trading. This created a problem when trading volume got thin. Guy Young, founder of Ethena Labs (which created USDe), explained that the depeg happened because Binance’s pricing system relied on its own limited liquidity instead of checking prices across multiple major exchanges. While USDe stayed above $0.90 on other platforms, it crashed to $0.65 on Binance. Source: @gdog97_ The same pattern hit BNSOL and WBETH. These tokens collapsed on Binance while holding steady elsewhere. WBETH dropped 88.7% below Ethereum’s value on Binance alone. A Suspicious Window Here’s where timing becomes interesting. On October 6, Binance announced plans to fix this exact problem. The exchange said it would switch from using its own orderbook prices to more reliable external data sources. The change was scheduled for October 14. The crash happened on October 10—right in the middle of that eight-day window. Colin Wu, a crypto journalist, pointed out this timing wasn’t random. Between the announcement and the planned fix, attackers had a clear opportunity. Binance’s risk team knew about the vulnerability but hadn’t closed it yet. How the Attack Worked Binance’s Unified Account system lets traders use different types of assets as collateral for leveraged trades. This…
Filed under: News - @ October 12, 2025 9:24 pm