Who Will Receive Compensation?
Binance disclosed that compensation would be provided to users impacted by losses in futures, margin, and loan products between 00:36 and 01:16 Turkish time on October 11. Transactions during this period involved collateral using USDe, BNSOL, and WBETH. The announcement acknowledged the platform’s performance degradation during high volatility, which resulted in order processing and delay issues leading to some losses. Yi He urged users to reach out to support if they experienced Binance-attributable losses, assuring each claim would be individually assessed, but specifying unrealized profits and normal price movement losses would not be covered.
During the market collapse, the USDe, which should be pegged at 1 dollar, dropped to as low as 0.66 dollars. Binance ecosystem altcoinBNB‘s value declined by approximately 10%. According to CoinGlass data, this downward spiral resulted in the liquidation of about 1.7 million investors. Automated liquidations from centralized exchanges and leveraged trades removed roughly 700 billion dollars from the total market capitalization. Binance saw 1.4 billion dollars in long positions and 981 million dollars in short positions liquidated. Richard Teng, in a separate statement, expressed regret without making excuses, pledging to learn from the incident.
Automatic Payments Within 72 Hours
Binance promised to calculate compensation based on the difference between the market price at 03:00 Turkish time on October 11 and the user’s liquidation price, with payouts to be distributed automatically within 72 hours. For cases outside the specified timeframe, users could apply via the support channel. Payments for asset management products would be made gradually.
The risk team plans to integrate weighting for redemption prices for USDe, BNSOL, and WBETH within the index methodology. This includes defining a base price threshold for USDe and increasing the frequency of risk parameter reviews. The aim is to prevent excessive deviation in index pricing during sudden liquidity shocks and ensure more consistent collateral quality monitoring. Transparency in governance remains a priority, and a case-specific evaluation approach will be maintained for user applications.