Story perspectives

Binance Launches $19B Compensation Amid Market Crash

10/12/2025

Summary

Binance Addresses Losses

Binance co-founder He Yi announced a compensation program for users affected during a $19 billion market crash.
The program covers losses tied to platform errors, not unrealized profits or market swings.
The crash was triggered by a U.S.-China tariff war and caused $700 million in liquidations within 24 hours.
Binance's insurance fund absorbed $188 million to stabilize operations.
Crypto.com’s CEO called for regulatory scrutiny of exchanges, citing transparency and fairness.

Summary

Binance Compensates Users

Binance has announced compensation for users liquidated between 00:36 and 01:16 UTC+3 on October 10, 2025 due to price depegs of USDE, BNSOL, and WBETH.
Compensation equals the difference between the market price and the liquidation price as of 03:00 UTC+3 on October 11, 2025.
Binance will update affected users within 72 hours about compensation steps.
Binance plans to enhance risk management controls to prevent future incidents.

History

Historical Context

The U.S.-China trade war, initiated in 2018, echoes historical trade conflicts, such as the Prohibitory Act of 1775, which aimed to cripple colonial trade. The recent trade tensions resulted in a $19 billion cryptocurrency market crash and $700 million in liquidations within 24 hours, prompting Binance to allocate $188 million for insurance, underscoring the need for improved risk management in the volatile crypto landscape.

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Binance Addresses Losses

Binance co-founder He Yi announced a compensation program for users affected during a $19 billion market crash.
The program covers losses tied to platform errors, not unrealized profits or market swings.
The crash was triggered by a U.S.-China tariff war and caused $700 million in liquidations within 24 hours.
Binance's insurance fund absorbed $188 million to stabilize operations.
Crypto.com’s CEO called for regulatory scrutiny of exchanges, citing transparency and fairness.

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