Binance Takes Action to Compensate Users Affected by Market Crash
Swift Compensation Promised to Affected Traders
In an official announcement, Binance, the premier cryptocurrency exchange by trading volume, has pledged to compensate users who suffered financial losses during the recent market turmoil on October 10. The platform acknowledged that a significant price depeg incident triggered forced liquidations for some traders, necessitating this compensatory measure.
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Details of the Compensation Plan
On October 11, Binance co-founder and Chief Customer Support Officer Yi He addressed the situation on the X platform. He acknowledged that several users faced transaction issues due to drastic market shifts and extended an apology. He urged affected customers to contact Binance’s customer service to formally register their grievances.
Following the market upheaval on Friday, numerous users took to the X platform to voice their frustrations over the involuntary closure of their trading positions on Binance. The exchange clarified that the troubles stemmed from a price depeg involving Ethena’s USDe, BNSOL, and WBETH, exacerbated by increased trading activity amid market volatility.
Yi He emphasized that Binance would evaluate each user’s account activity individually before disbursing any compensation. However, he highlighted that losses attributable to ordinary market fluctuations or unrealized profits would not qualify for compensation. He stated, “Binance’s hallmark is our commitment to addressing issues head-on. We take ownership of our shortcomings and are dedicated to providing the best possible service to our users.”
The cryptocurrency giant assured affected users that they would receive their compensation within 72 hours. The reimbursement is set to cover the difference between the liquidation and market prices as of midnight on October 11.
Market Volatility Amplified by Geopolitical Tensions
The turbulence in the cryptocurrency market was further intensified by geopolitical developments. United States President Donald Trump announced his intention to levy 100% tariffs on all goods imported from China by November 1, contributing to the heightened volatility.
This declaration sent shockwaves through the market, causing Bitcoin, the largest cryptocurrency by market capitalization, to plummet sharply to approximately $101,500. In the wake of this announcement, the crypto market experienced close to $20 billion in long liquidations, marking the largest single-day liquidation event to date.
At the time of reporting, Bitcoin’s price has stabilized around $111,000, reflecting an approximate 10% decline over the past week.
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