Binance Payouts Hinge on Tariff-Driven Chaos, Not Exchange Failures: $283M Compensates Traders

Binance has allocated $283 million in compensation to users affected by the temporary depegging of synthetic assets USDe, BNSOL, and WBETH during the October 10, 2025, crypto market crash Binance Responds to Depeg with $283 Million User Payouts^[1]. The exchange distributed funds in two batches within 24 hours, covering traders whose collateral values collapsed between 21:36 and 22:16 UTC Binance Confirms Compensation for Affected Traders as USDe and WBETH Depeg^[2]. The payout calculated the difference between liquidation prices and market values recorded at 00:00 UTC on October 11 Binance Compensates Users $283 Million after Depeg Event amid Market Volatility^[3]. Additional compensation was automatically credited to users facing internal transfer delays or Earn redemption lags within 72 hours Binance Sets Depeg Payouts; $283M Already Reimbursed^[4].

Binance attributed the depegging to a broader market downturn triggered by U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports, which caused a $19 billion liquidation event across the crypto market Binance to Compensate Some Users After Several Markets Depeg^[5]. The exchange emphasized that the depeg followed the sell-off rather than caused it, citing internal data showing the strongest market decline occurred at 21:20 UTC, prior to the synthetic asset dislocations Binance Responds to Depeg with $283 Million User Payouts^[1]. Ethena Labs, issuer of USDe, confirmed its systems operated without interruption during the period, processing over $2 billion in withdrawals within 24 hours with "zero issues" Binance Compensates Users $283 Million after Depeg Event amid Market Volatility^[3].

To mitigate future risks, Binance introduced structural changes, including integrating redemption prices into the price index for the affected assets and setting a minimum price floor for USDe Binance Responds to Depeg with $283 Million User Payouts^[1]. The exchange also addressed unrelated price anomalies, such as IOTX displaying a $0 value due to a decimal display error Binance Sets Depeg Payouts; $283M Already Reimbursed^[4].

The depegging event coincided with one of the largest liquidation events in crypto history, erasing $19 billion in open interest and impacting 1.7 million traders Binance Confirms Compensation for Affected Traders as USDe and WBETH Depeg^[2]. Binance ranked third among exchanges by liquidation volume, with $1.4 billion in long positions and $981 million in shorts wiped out Binance Confirms Compensation for Affected Traders as USDe and WBETH Depeg^[2]. Despite the losses, the exchange's share of long-side liquidations (59%) was lower than rivals, which saw up to 85% of liquidations hit bullish traders Binance Confirms Compensation for Affected Traders as USDe and WBETH Depeg^[2].

Bitcoin initially dropped below $105,000 during the crash but rebounded above $114,000 by October 12, reflecting broader market stabilization Binance to Compensate Some Users After Several Markets Depeg^[5]. Binance's token, BNB, fell nearly 10% in the aftermath but later regained ground, overtaking XRP to become the third-largest non-stablecoin cryptocurrency by market capitalization Binance Confirms Compensation for Affected Traders as USDe and WBETH Depeg^[2].

The incident has intensified calls for regulatory scrutiny. Crypto.com CEO Kris Marszalek urged regulators to investigate exchanges with high liquidation volumes to ensure fair practices Binance Confirms Compensation for Affected Traders as USDe and WBETH Depeg^[2]. Binance's co-founder and CEO Richard Teng acknowledged the company's responsibility, stating, "We don't make excuses - we listen closely, learn from what happened, and are committed to doing better" Binance Confirms Compensation for Affected Traders as USDe and WBETH Depeg^[2].