Key takeaways
- Binance distributed $283 million in compensation to users affected by technical issues and market volatility on October 10.
- The compensation was for deindexed assets like USDE, BNSOL, and WBETH due to extreme price movements and platform issues.
Share this article
Binance announced on Sunday that it had allocated approximately $283 million in compensation to users affected by market volatility and technical issues that occurred on Friday.
The compensation mainly covered losses related to deindexed assets, including USDE, BNSOL and WBETH.
Binance said that between 8:50 p.m. and 10:00 p.m. UTC on October 10, heavy institutional and retail selling led to sharp declines in the crypto markets. The deanchor followed the economic downturn, with prices bottoming out between 9:20 p.m. and 9:21 p.m. UTC and a significant deanchoring beginning after 9:36 p.m. UTC.
The exchange finalized the clearing within 24 hours after extreme volatility triggered massive selling and unanchoring of collateral.
“Binance remains committed to resolving these issues in a responsible and transparent manner, as transparency has always been one of our core values,” the exchange said in its announcement.
The firm also identified extreme price movements in some spot trading pairs, attributing them to historical limit orders dating back to 2019 triggered during periods of low liquidity.
Some trading pairs were showing “zero prices” due to recent changes in decimal settings, which Binance said was a display issue rather than true zero value trades.
Friday’s crash that shook crypto markets wiped out about $19 billion in leverage, including $16.6 billion in long positions. Triggered by President Trump’s economic policy announcements, the selloff sent Bitcoin tumbling from $122,000 to $102,000 and sent Ethereum tumbling.
Bitcoin was trading around $113,800 at press time, recovering from “Black Friday” and now sitting around 10% below its recent high.
Share this article
