Binance, the world’s largest cryptocurrency exchange, has paid out $283 million to users impacted by a short but intense market disruption on October 10, 2025.
The event caused three Binance Earn assets, Ethena’s USDe, Binance’s Solana liquid staking token (BNSOL), and Wrapped Beacon staking token (WBETH), to temporarily depeg from their target prices.
According to the exchange, the disruption lasted about 40 minutes, from 21:36 to 22:16 UTC. During that period, rapid price swings spread across the platform, ultimately triggering the temporary depegging.
What Went Wrong During the Crash
During the sell-off, USDe, a stablecoin meant to maintain parity with the U.S. dollar, dropped sharply to $0.66 on Binance. However, prices on other exchanges remained close to $1, indicating a localized problem rather than a systemwide collapse.
This discrepancy prompted clarification from Ethena Labs, the issuer of USDe. In an X post, Guy Young, CEO of Ethena Labs, stated that it was inaccurate to describe the event as a “USDe depeg”. He explained that the largest liquidity pools outside Binance remained stable throughout the volatility.
Who Received Compensation
The $283 million compensation package covered users involved in futures, margin, and loan positions that used the affected assets as collateral. Binance also reimbursed customers who faced losses from internal transfers or Earn redemptions during the crash window.
According to the company, compensation was issued in two batches, and case reviews are still ongoing for the remaining claims.
Moreover, Binance executives publicly apologized to users for the disruption and emphasized their commitment to maintaining customer trust.
Binance Denies Attack Rumors
Soon after the incident, several online posts claimed that Binance was attacked, leading to the depeg. The company has firmly denied those rumors.
In a statement, Binance said that the market downturn occurred before the price irregularities appeared. Specifically, trading data showed that the lowest prices happened between 21:20 and 21:21 UTC, whereas the depeg started about 15 minutes later. The exchange described this as a secondary effect, not the cause of the broader crash.
Measures to Prevent Future Depegs
To restore confidence, Binance introduced new mechanisms to stabilize asset prices in its Earn markets. These include adding redemption prices to the index weights and implementing a soft price floor for USDe to limit extreme deviations.
Additionally, the exchange addressed irregular price moves in IOTX and ATOM. These tokens momentarily plunged to near zero due to old limit orders dating back to 2019. Binance said it will update its display systems after a technical glitch showed a zero price for the IOTX/USDT pair.
BNB Token Rebounds Amid Broader Recovery
Despite the chaos, the crypto market rebounded quickly over the weekend. BNB, the native token of Binance Smart Chain (BSC), jumped nearly 15% in 24 hours, reflecting renewed optimism among traders.
Binance stated that it remains committed to “protecting user assets above all else” and will continue reviewing its systems to ensure greater resilience and transparency in volatile conditions.
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