Binance announced that it will add another $300 million in stablecoins as extra compensation to customers who were forced into liquidations during the recent crypto crash that happened last Friday, October 10, 2025.
The exchange also plans to offer $100 million in low-interest loans to institutions hit hard by the selloff.
💛 Binance launches the Together Initiative, a $400M recovery and confidence-rebuilding plan to support users and institutions during this volatile period.
— Binance (@binance) October 14, 2025
The plan, called the “Together Initiative,” follows the crash after it wiped out billions in crypto value worldwide. Binance is now working to help users recover their losses after technical problems on its platform worsened the market chaos. The exchange has initially announced a $283 million payout to customers before now.
Trader Loses Fund Due to System Glitches
The company acknowledged that during the crash, prices of major cryptocurrencies on its platform dropped far below other exchanges. Many traders said they could not access their accounts or close positions due to system slowdowns.
These issues left thousands of users with heavy losses. Binance admitted to the errors. “As the industry leader, we expect some level of scrutiny, fair or unfair. However, users are always our first priority. Without our users’ support, there would be no Binance.” The exchange said affected users could receive between $4,000 and $6,000 in USDC based on eligibility.
Trump’s Tariff Shock Sparks $19B Crypto Meltdown
Meanwhile, this happened after the U.S. President Donald Trump announced plans to impose 100% tariffs on Chinese imports. His statement, which was shared on social media, triggered panic in global markets.
Stocks dropped, oil prices slid, and investors rushed to gold and U.S. Treasuries. In just a few hours, more than $19 billion in leveraged crypto positions vanished, according to previous reports. Around 1.6 million traders were liquidated, making it one of the largest single-day market crashes in crypto history.
Bitcoin took the biggest hit on the day as it fell more than 12% from $126,000 to nearly $102,000 before recovering. Analysts said the sharp fall was fueled by overleveraged bets and a market already stretched by optimism.
During the crash, Binance’s systems struggled with record traffic which affected wrapped assets like wBETH, BNSOL, and USDe, which briefly lost value. Binance Co-Founder Yi He apologized, saying the exchange faced “significant market fluctuations and a substantial influx of users.” The company has since updated its pricing model, fixed display errors to prevent a repeat.