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On October 10, Binance distributed $283 million in compensation to users affected by technical glitches and market volatility. The compensation addressed depegged assets such as USDE, BNSOL, and WBETH caused by extreme price volatility and platform issues.
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Binance announced on Sunday that it has allocated approximately $283 million in compensation to users affected by market volatility and technical issues that occurred on Friday.
This compensation primarily covered losses related to non-pegged assets such as USDE, BNSOL, and WBETH.
Binance stated that between 20:50 and 22:00 (UTC) on October 10, a concentration of selling by institutional investors and individuals caused a sharp decline in the entire cryptocurrency market. The decline was followed by unpegging, with prices bottoming out between 21:20 and 21:21 UTC, with severe depegging starting after 21:36 UTC.
The exchange completed the compensation within 24 hours after extreme volatility triggered widespread selling and unpegging of collateral.
“Binance remains committed to addressing these issues responsibly and transparently, as transparency has always been one of our core values,” the exchange said in an announcement.
The firm also identified extreme price movements in certain spot trading pairs and attributed them to historical limit orders dating back to 2019 that were triggered during periods of low liquidity.
Some trading pairs displayed “zero price” due to recent decimal parameter changes, but Binance clarified that this was a display issue rather than an actual zero value trade.
Friday’s crash that rocked the cryptocurrency market wiped out about $19 billion in leverage, including $16.6 billion in long positions. President Trump’s economic policy announcements led to a sharp decline in Bitcoin, which fell from $122,000 to $102,000, and Ethereum crashed.
At the time of writing, Bitcoin is trading at around $113,800, having recovered from “Black Friday” and is currently around 10% below its recent high.
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