Binance Unveils $283M Investor Payout After Stablecoin Market Shakeup
Binance announces $283 million compensation for users affected by last week’s market chaos, including stablecoin depegging...
Quick overview
- Binance has announced a $283 million compensation program for users affected by recent market chaos, targeting liquidated traders and those with delayed transfers.
- The market experienced over $7 billion in liquidations in one hour, primarily affecting long positions, but Binance confirmed their infrastructure remained intact.
- Despite the recovery in the market, Binance plans to enhance risk management and liquidity protections to prevent future disruptions.
- Analysts are showing renewed bullish sentiment towards Bitcoin and other major cryptocurrencies following a significant market rebound.
Binance announces $283 million compensation for users affected by last week’s market chaos, including stablecoin depegging. The program targets two groups: traders who got liquidated and those who faced delays in redemptions or internal transfers.
The market went crazy on Friday, with over $7 billion in liquidations in an hour. Most of the losses were from longs. Binance said their core infrastructure was fine, and the extreme moves were due to macro not system issues.
There were some technical glitches that affected USDe, BNSOL and WBETH which are used as collateral in Binance Earn products. CEO Richard Teng apologized publicly and said they will do their best to restore user trust and prevent this from happening again.
- 2 phase compensation program
- Covers liquidated positions and delayed transfers
- Affects users during stablecoin depeg
Market Bounces Back After Macro Shocks
The market recovered after President Donald Trump backed off on tariff threats on Chinese imports. Bitcoin went up 3.74% to $114,913 after a $20 billion liquidation. Other major cryptos also recovered with improved sentiment and bullish signals from veteran traders.
🚨 Breaking News:
Binance has announced a $283M compensation package 💰 for users affected by a sudden de-pegging event that sent shockwaves through the digital markets on Friday.#Binance #CryptoNews #Depeg #Web3 pic.twitter.com/ncqGNM8S7T
— Crypto Captain (@jumpingstocks) October 13, 2025
Analyst Peter Brandt is now bullish on Bitcoin, Ethereum, XRP and XLM after being bearish earlier. Michael Saylor, founder of Strategy, hinted at buying more Bitcoin as overall crypto market cap went up $194 billion since the crash.
- Bitcoin up 3.74% in 24 hours
- Crypto market cap up $194 billion since crash
- Positive sentiment from veteran traders
Binance Boosts Risk Controls
Despite the market recovery, Binance still says crypto trading is high risk during volatility. They will enhance their risk management and liquidity protections to prevent future disruptions.
Some severe price drops on specific spot pairs were due to long dormant limit orders that executed during the liquidity crunch and temporarily exaggerated the moves. Binance said these market distortions were not manipulation and was just normal trading mechanics under stress.
- Upgraded risk controls and liquidity measures
- Dormant limit orders caused temporary price moves
- User protection is top priority for Binance.
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