Binance's Compensation Reflects Crypto's Stability Crisis

Binance has announced a compensation plan for users affected by the depegging of stablecoin USDE and staking tokens BNSOL and WBETH during a period of extreme market volatility on October 10–11, 2025. The exchange will issue automatic compensation to futures, margin, and loan users who held these assets as collateral between 21:36 and 22:16 UTC on October 10, calculated as the difference between the market price at 00:00 UTC on October 11 and their liquidation price. Compensation will be distributed within 72 hours Binance to Compensate USDE Detachment Affected Users Within 72 Hours^[1]. Users outside this scope must contact Binance customer service for manual claims Binance to Compensate Users Affected by USDE, BNSOL, and …^[4].

The depegging event, triggered by a large institutional cross-margin portfolio liquidation, caused forced liquidations and significant price deviations within 40 minutes Binance to Compensate Users for USDE, BNSOL, and WBETH Depegging^[5]. During the crisis, USDE fell below $0.66, BNSOL dropped to $34.90, and WBETH to $430.65, far below their intended values. Binance attributed the incident to a combination of extreme market volatility and a surge in user activity, which strained its systems .

In response, Binance has implemented three risk control upgrades: adjusting index weights to include redemption prices for the affected tokens, setting a minimum price floor for USDE, and increasing the frequency of risk control parameter reviews Binance to Compensate Users for USDE, BNSOL, and WBETH Depegging^[5]. These measures aim to enhance stability and prevent similar disruptions.

The broader market impact was severe, with global liquidations exceeding $19.3 billion, affecting over 1.7 million traders. Binance accounted for $2.3 billion of these losses, including $1.4 billion in long positions and $981.6 million in short positions . The exchange's native token, BNB, dropped nearly 10% amid the turmoil Binance to compensate some users after several markets depeg: …^[2].

Binance co-founder and Chief Customer Service Officer Yi He and CEO Richard Teng issued public apologies, emphasizing accountability and transparency. He clarified that compensation applies only to losses directly attributable to platform issues, excluding those from market fluctuations or unrealized profits Binance to compensate some users after several markets depeg: …^[2]. Teng reiterated Binance's commitment to addressing each case individually, stating, "We don't make excuses-we listen closely, learn from what happened, and are committed to doing better" Binance offers to compensate traders affected by platform …^[3].

Industry reactions highlight calls for regulatory scrutiny. Crypto.com CEO Kris Marszalek urged regulators to investigate exchanges with high liquidation volumes to ensure fair practices . Some traders on social media alleged CEX manipulation, though Binance denied systemic failures, attributing the incident to external market conditions .

Binance's proactive approach contrasts with the silence of other major exchanges, such as OKX, which claimed stable system performance during the crisis Binance offers to compensate traders affected by platform …^[3]. The exchange's compensation plan and technical upgrades may set a precedent for industry standards, particularly as regulatory expectations for exchange resilience rise Binance Announces Some User Compensation After $20 Billion …^[6].