TLDR
- Binance launched a $283 million compensation program for users affected by stablecoin depegs and technical issues during Friday’s market crash
- The crash resulted in over $7 billion in liquidations within one hour following Trump’s tariff announcements on Chinese imports
- Bitcoin dropped to $102,000 during the crash but has since recovered to around $114,913
- Technical glitches caused temporary depegging of assets like USDe, BNSOL, and WBETH used as collateral in Binance Earn products
- Binance CEO Richard Teng apologized and promised to improve risk controls and liquidity protections
Binance announced a $283 million compensation program for users affected by last week’s market crash. The exchange will cover losses from liquidated positions and delays in transfers or redemptions.
The crypto market experienced massive volatility on Friday. Over $7 billion in liquidations occurred within a single hour.
Due to significant market fluctuations over the past 16 hours and a substantial influx of users, some users have encountered issues with their transactions. I deeply apologize for this. If you have incurred losses attributable to Binance, please contact our customer service to⌠https://t.co/9Q7GZuFY5H
— Yi He (@heyibinance) October 11, 2025
The crash followed President Donald Trump’s announcement about new tariffs on Chinese imports. Bitcoin fell to $102,000 during the selloff.
Binance said its core infrastructure remained operational during the crash. The exchange attributed the extreme volatility to macroeconomic conditions rather than system failures.
However, several technical glitches occurred after the initial crash. Some stablecoins temporarily depegged from their intended values.
Assets like USDe, BNSOL, and WBETH experienced price swings. These assets were used as collateral in Binance Earn products.
Technical Issues Force Liquidations
The depegging events forced some users into liquidation. Surging trading volumes caused transaction errors and order delays.
Co-founder Yi He acknowledged the problems in a statement. She urged affected users to contact customer support to file claims.
The exchange will compensate verified losses caused by technical failures. Losses from normal market volatility will not be covered.
More than 1.6 million traders were liquidated in 24 hours. The total losses across all exchanges exceeded $19 billion.
DeFi Platforms Outperform
Decentralized finance platforms handled the crash differently. Uniswap processed $10 billion in daily volume without issues.
Lending protocol Aave completed $180 million in collateral liquidations smoothly. No system failures were reported on major DeFi platforms.
Binance CEO Richard Teng issued a public apology. He said regaining user trust is the exchange’s top priority.
The exchange explained some price declines on spot pairs. Long-standing limit orders from years ago executed during the liquidity crunch.
These dormant orders momentarily distorted market prices. The exchange is working to prevent similar issues.
Market Recovery Underway
The crypto market has started recovering. Bitcoin rebounded 3.74% to trade around $114,913.
Trump later softened his stance on tariffs. This helped restore confidence in the markets.
Veteran trader Peter Brandt turned bullish on major cryptocurrencies. He previously predicted sharp downturns for Bitcoin and Ethereum.
Strategy founder Michael Saylor hinted at a Bitcoin purchase. The global crypto market cap recovered $194 billion since the crash.
Binance reminded users that crypto trading carries risks during high volatility. The exchange plans to strengthen its risk controls and improve liquidity protections to handle extreme trading conditions.
