Binance Compensates Users $283M After Token Depeg Incidents

Binance has confirmed it compensated users $283 million following token de-pegging incidents during severe market volatility on October 10, 2025. The exchange attributed the situation to global macroeconomic shocks that caused heavy sell-offs across digital assets.

Addressing public concerns, Binance dismissed market speculation linking the sharp downturn to internal issues. It explained that its core systems, including futures and spot matching engines, as well as API services, operated normally during the turbulence.

Binance’s Response and Compensation Plan

According to the exchange, forced liquidations on its platform made up only a small portion of the total market activity. Binance said the wider volatility resulted mainly from global market conditions rather than internal failures.

Despite this, the platform acknowledged that some technical modules briefly malfunctioned after 21:18 UTC. These issues, combined with fast price drops, triggered temporary de-pegging in certain assets.

In response, Binance said it completed full reimbursement within 24 hours to users affected by these disruptions. The exchange emphasized its commitment to transparency and user protection while handling all compensation cases.

The company outlined three key areas in its compensation plan. First, Binance clarified that the de-pegging of tokens linked to USDE, BNSOL, and WBETH products did not trigger the wider sell-off. It explained that the market decline occurred around 21:20 UTC, while de-pegging followed about 16 minutes later. Users whose collateralized assets were impacted received reimbursement in two batches totaling roughly $283 million.

Second, Binance noted that delays in internal fund transfers and Earn product redemptions prevented some users from adding margin during the event. Those with verified losses from such delays are being compensated.

Third, the exchange said case reviews remain ongoing and updates will continue through official channels. Binance reaffirmed that transparency remains a core priority throughout the process.

Investigation Into Abnormal Price Movements

The platform also addressed abnormal price swings seen in pairs such as IOTX and ATOM. It attributed these movements to old limit orders from as early as 2019 being triggered when market liquidity thinned.

In addition to these findings, Binance said that changes in decimal precision for certain pairs briefly caused display errors showing “zero” prices. It confirmed these were visual glitches, not real market prices, and plans user interface updates to prevent similar cases.

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