Binance has announced its plans to compensate some users who lost money during the market crash on Friday, October 10. The world’s largest cryptocurrency exchange by trading volume acknowledged the price depegging incident, which led to the forced liquidation of some traders.
Affected users will receive compensation within 3 days: Binance
in Post October 11 On the While apologizing to customers, the stock exchange official asked affected customers to contact customer service to file their complaints.
Following the market bloodbath on Friday, some users took to the X platform to complain about the forced closure of their trading positions on the Binance exchange. According to the cryptocurrency exchange’s explanation, these issues were caused by a price unpegging involving Ethena’s USDe, BNSOL, and WBETH, as the market fluctuated and users flooded the trading platform.
Binance noted that the account activity of each user will be reviewed individually before compensation is issued accordingly. However, it is also stated that losses due to market fluctuations and unrealized profits are not eligible for compensation.
He wrote on X:
The reason Binance is Binance is because we never shy away from problems. When we fall short, we take responsibility – there are no excuses or justifications. We are committed to serving each user to the best of our ability, and we will manage what we are responsible for.
Binance Announce On its website, affected users will receive their compensation within 72 hours. This payment will reportedly cover the difference between the liquidation price and the market price at midnight on October 11.
Trump slaps China with 100% tariffs, and the cryptocurrency market collapses
As mentioned earlier, the Binance issue arose due to extreme volatility in the cryptocurrency market. This increased volatility came after US President Donald Trump announced plans to impose 100% tariffs on all Chinese goods by November 1.
Source: @realDonaldTrump on Truth Social
As a result of this decision, Bitcoin, the largest cryptocurrency by market capitalization, saw a rapid collapse to around $101,500. Meanwhile, the cryptocurrency market recorded nearly $20 billion in long liquidations — the largest single-day liquidation event in history — following the announcement.
As of this writing, Bitcoin’s price is hovering around the $111,000 level, reflecting a roughly 10% decline in the past seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
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