Exchange Compensates Affected Users Following Friday’s Volatility
Binance, the world’s largest cryptocurrency exchange by trading volume, has paid out $283 million in compensation to users affected by the sudden depegging of three assets during Friday’s market crash. The exchange confirmed that the reimbursement covered losses linked to Ethena’s stablecoin USDe, Binance’s Solana liquid staking token BNSOL, and Wrapped Beacon ETH (WBETH).
According to Binance, the market-wide sell-off that occurred on October 10, 2025, triggered price instability, causing the assets to temporarily depeg from their intended values. USDe, which is meant to maintain a $1 peg, briefly dropped below $0.66 on Binance during the chaos.
Compensation Details and Timeline
Binance stated that compensation was issued to futures, margin, and loan users who had used USDe, BNSOL, or WBETH as collateral between 21:36 and 22:16 UTC, as well as users who suffered verified losses from Earn redemptions and internal transfers. The payouts were made in two batches totaling $283 million.
While some speculated that the Binance depeg triggered the broader market crash, the exchange rejected that claim. “The extreme market downturn occurred before the de-pegging,” Binance clarified, noting that most major assets reached their lowest prices around 21:20 UTC, roughly 15 minutes before the depeg event.
Binance Responds to Community Concerns
In response to user frustration, Binance executives issued public apologies and promised stronger safeguards to prevent similar incidents. The company said it will update its index weighting system by including redemption prices to stabilize future price movements. Additionally, a soft price floor will be introduced in the reference index for USDe to reduce volatility during rapid sell-offs.
Ethena Labs CEO Guy Young addressed the issue on X, emphasizing that USDe did not experience a true depeg across markets. “A single venue was out of line with the deepest pools of liquidity that experienced no abnormal price deviations whatsoever,” he said.
Historic Limit Orders and Token Volatility
Binance also acknowledged extreme price movements in certain altcoins such as ATOM and IOTX, with ATOM briefly appearing to crash below $0.01 before recovering to around $3.50. The exchange explained that old limit orders dating back as far as 2019 remained active on its platform and were executed during the liquidity crunch, leading to temporary price distortions.
In IOTX’s case, a display error caused the token to appear as if it had hit $0 due to the platform not showing sufficient decimal places. Binance confirmed that a fix is being implemented.
Market Rebounds Following the Crash
Despite the chaos, the crypto market has shown signs of recovery. Binance’s native token BNB surged over 11% in the last 24 hours.
Binance indicated that it is still reviewing additional user claims, suggesting that more compensation may follow as investigations conclude.
