Binance has announced it will compensate a subset of users who suffered losses during a severe market disruption on October 10, 2025, when platform slowdowns coincided with sharp depegs of several tokens and one of the largest liquidation events in crypto history. Approximately 1.7 million positions were liquidated across the market, erasing nearly $20 billion in open interest, with Binance accounting for about $1.4 billion in long positions and $981 million in shorts wiped out.
In public apologies on X, Binance co-founder and chief customer support officer Yi He and CEO Richard Teng acknowledged technical issues during heightened trading activity. Yi He stated, "If you have incurred losses attributable to Binance, please contact our customer service to register your case... When we fall short, we take responsibility—there are no excuses or justifications." Compensation will cover Futures, Margin, and Loan users who held USDe, BNSOL, and WBETH as collateral and were impacted between 21:36 and 22:16 UTC on October 10. Payouts will equal the difference between each asset's liquidation price and its market price two hours later at midnight UTC.
The affected tokens experienced significant depegs: USDe, designed to maintain a $1 peg, crashed to $0.66, while Binance's Solana liquid staking token BNSOL and Wrapped Beacon ETH (WBETH) also broke from their intended values. Binance's own token, BNB, slid nearly 10% in the aftermath, trading around $545. Despite this, BNB recently overtook XRP to become the third-largest non-stablecoin cryptocurrency by market cap.
CEO Richard Teng, who succeeded Changpeng Zhao in 2023, echoed the apology, emphasizing that Binance will "learn from what happened" and improve system redundancies. Yi He added that users who bought depegged assets at discounted prices would keep their gains, while wealth management clients affected by the same tokens would be handled separately. The event has sparked calls for regulatory scrutiny, with Crypto.com CEO Kris Marszalek urging a review of exchange practices, citing the scale of user losses.