Binance has released a new update regarding the losses incurred when some assets on its platform lost price stability (depeg) following the severe market crash that occurred on the night of October 10th. The company announced that it completed compensation payments of approximately $283 million to affected users within 24 hours and that the process for user protection measures is ongoing.
Binance Issues Statement Following the Massive Crash
According to the statement published on October 12th and updated on the morning of October 13th, global macroeconomic developments led to sudden selling waves in the crypto market between 8:50 PM and 10:00 PM (UTC) on October 10th. Mass selling by both institutional and individual investors caused sharp price fluctuations across the market. Binance stated that the platform's core spot and futures engines remained active during this period, and that the volatility experienced was due to general market conditions. However, it was determined that some technical modules experienced short-term disruptions after 9:18 PM UTC, resulting in short-term price deviations for some assets such as USDe, BNSOL, and WBETH. The company announced that all users who used these three assets as collateral and experienced liquidations have been paid, and that the compensation has been distributed in two batches.
Binance also announced that users who suffered losses due to delays in internal transfers and redemptions of Earn products during the extreme market volatility will be compensated. Accordingly, all confirmed losses will be paid sequentially.
The company maintains its stance that Binance was not responsible for the incident. The statement reads, “The market crash occurred before the depeg event. According to data, prices reached their lowest level between 9:20 PM and 9:21 PM UTC on October 10; the severe depeg occurred after 9:36 PM UTC.”
Binance also clarified some of the extreme price movements that sparked controversy in the community. It was reported that the sharp declines experienced in altcoins such as ATOM and IOTX, in particular, were due to the automatic triggering of old limit orders dating back to 2019. Insufficient liquidity on the buy side led to chain selling pressure. The company stated, “The ‘$0’ value seen in the IOTX/USDT pair was merely a display error; there was no actual price drop.”
Binance announced that it would fix the decimal display issues in the user interface and also make improvements to the visual interface (UI) and price indexing mechanisms to prevent such situations from occurring again.
Finally, Binance added a new clause to its statement, stating that a report would be submitted to regulatory authorities if any possible “market surveillance violations” related to the incident were detected.
Following the incident, markets experienced a slight recovery. Binance’s native token, BNB, gained approximately 10 percent in the last 24 hours, while the GM30 index, which represents the overall market, rose around 6 percent.
Binance stated that the investigation is still ongoing, that all user cases will be reviewed individually, and that progress will continue to be announced through official channels.
