Binance Issues $283 Million in Payouts After Asset Depegs in Volatile Crypto Market

Binance announced on Sunday that it has paid out approximately $283 million to users affected by recent price depegs in three of its Earn products. The compensation addresses losses from a sharp market downturn on October 10, 2025, which led to temporary deviations in the values of Ethena’s USDe stablecoin, Binance’s Solana liquid staking token BNSOL, and Wrapped Beacon liquid staking token WBETH. Executives at the exchange expressed regret over the disruptions and committed to covering verified impacts for eligible traders.

The depegs struck between 21:36 and 22:16 UTC that Friday, shortly after the broader crypto market hit its lowest points around 21:20 UTC. USDe, designed to maintain a one-dollar peg, dipped below $0.66 dollars on the platform during this window, while BNSOL and WBETH also strayed from their targets. Although these assets showed milder deviations on competing exchanges, the events on Binance triggered liquidations for users holding them as collateral in futures, margin, and loan positions.

Platform Enhancements and Clarifications on Market Events

Binance structured the payouts in two batches, focusing first on those directly liquidated due to the depegs and extending to users with confirmed losses from internal transfers or Earn redemptions. The exchange plans to review additional cases individually, urging affected parties to reach out through customer support for assessment. This approach ensures that only attributable harms receive redress, excluding general market swings or unrealized gains.

Company leaders, including co-founder Yi He and CEO Richard Teng, issued public apologies on social media, acknowledging the strain on users during the volatility. He emphasized accountability without deflection, while Teng highlighted the need for ongoing improvements in response to feedback. Over $19 billion dollars in liquidations rippled through the sector in the ensuing 24 hours, underscoring the intensity of the sell-off tied to global economic pressures.

To prevent similar issues, Binance outlined targeted adjustments for the impacted markets. It will incorporate the assets’ redemption prices into index calculations and introduce a soft price floor specifically for USDe references, aiming to buffer against future fluctuations. These measures build on a full audit of the incident, which confirmed that core trading engines stayed online despite brief lags in some modules.

The exchange also tackled reports of drastic price swings in other tokens, such as IOTX and ATOM, which appeared to plummet to near zero on Binance before recovering. Officials attributed these to longstanding limit sell orders, some placed as far back as 2019, that executed amid thin buy-side liquidity during the rout. For the IOTX/USDT pair, a display glitch limited decimal precision, creating the illusion of a zero value that did not reflect actual trades.

Binance views this episode as a learning opportunity to bolster overall resilience. Teams are refining user interface elements to better handle anomalous readings and enhancing risk protocols for high-stress periods. Traders can expect clearer visibility on such fixes, though API functions will remain unchanged to preserve developer continuity.