- Binance paid out $283 million after the USDe, BNSOL, and WBETH depegging that led to forced liquidations, covering user losses within 24 hours.
- Exchange adds redemption prices, soft floors to stabilize synthetic asset indices.
- Binance denies systemic flaw, says depeg followed market crash triggered by tariffs.
Binance has completed $283 million in compensation for users affected by forced liquidations tied to the temporary depegging of USDe, BNSOL, and WBETH. The exchange said the settlements were processed in two batches within 24 hours of the October 10 crypto flash crash – the day that saw $19 billion in liquidations, marking one of the largest sell-offs in crypto history.
According to Binance, the payout covers traders whose collateral values collapsed between 21:36 and 22:16 UTC, when synthetic assets briefly lost parity. Each claim was calculated by comparing liquidation prices against market values recorded at 00:00 UTC on October 11.
Related: CoinGlass Accuses Binance of Underreporting Liquidations in Trump-Induced Crypto Crash
Additional compensation is being distributed to users affected by internal transfer delays and Earn redemption lags, with payments credited automatically within 72 hours. Those not yet reimbursed can request case reviews through support.
The platform’s internal report concluded that while the forced liquidations coincided with a broader market downturn, the depegging itself followed the sell-off rather than causing it. Binance stated that its data showed the strongest market decline occurred around 21:20 UTC, prior to the synthetic asset dislocations.
Market Timing and Root Cause
The depegging event occurred in response to a market reaction to remarks by U.S. President Donald Trump about a potential 100% tariff on Chinese imports. USDe, issued by Ethena Labs, dropped below $0.66 on Binance before recovering, while Binance’s staking tokens BNSOL and WBETH also experienced temporary instability.
Ethena Labs co-founder and CEO Guy Young said in a post on X that the event was limited to Binance and that other trading venues with deeper liquidity showed no similar price distortions.
However, to prevent recurrence, Binance has introduced several structural changes. The exchange will now incorporate redemption prices into the price index for affected assets and set a minimum price level for USDe to help maintain stability.
The exchange also clarified unrelated anomalies involving IOTX and ATOM price spikes. According to Binance, old limit orders dating back years led to price swings during the sell-off, with IOTX displaying a price of $0 due to a decimal display issue that is now being corrected.
Related: Did a Targeted Exploit Sink Binance? Analysts Probe the $1 Billion Liquidations Loss
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Source: https://coinedition.com/binance-responds-to-depeg-with-283-million-user-payouts/
