Exchange Offers Compensation to Affected Traders
Binance announced a $400 million relief program for traders hit by last week’s market crash, pledging to distribute token vouchers and liquidity loans even as it reiterated that it bears no legal responsibility for client losses.
In a post on Tuesday, the exchange said the initiative includes $300 million in token vouchers for users who suffered forced liquidations on futures or margin positions between Oct. 10 and Oct. 11. Eligible users must have lost at least $50 in crypto, representing 30% or more of their net assets, based on a balance snapshot from Oct. 9. The vouchers, valued between $4 and $6,000, are to be distributed within 96 hours.
Binance will also launch a $100 million low-interest loan fund for institutional clients and ecosystem projects affected by the sell-off, intended to ease liquidity pressures. The exchange described the move as part of broader efforts to “rebuild confidence” across the digital asset market but stressed it does not “accept liability for users’ losses.”
Investor Takeaway
Largest Liquidation Event in Crypto History
The move follows one of the most violent sell-offs in years. More than $19 billion in leveraged positions were wiped out within 24 hours after U.S. President Donald Trump threatened 100% tariffs on Chinese imports last Friday, triggering mass liquidations across exchanges. According to Coinglass data, it was the biggest single-day liquidation event in the history of digital assets.
As prices collapsed, traders reported technical problems on Binance, including delayed order executions and pricing discrepancies. Some users said they were unable to close futures positions, while others pointed to brief moments when stablecoin pairs or certain altcoins—such as Enjin (ENJ), Cosmos (ATOM), and IoTeX (IOTX)—displayed prices of $0 due to data errors from oracle feeds.
Binance said in a statement on Sunday that its core futures systems had remained operational throughout the crash, though it acknowledged “isolated interface issues.” The exchange’s native BNB token also saw sharp swings before recovering part of its losses this week.
Combined $728M in Recovery Measures
Friday’s turmoil prompted a flurry of compensation efforts across Binance’s ecosystem. On Monday, BNB Chain launched a $45 million reload airdrop to users who suffered losses trading memecoins during the crash. Binance had earlier allocated $283 million for post-crash stabilization measures. Together with Tuesday’s relief initiative, total recovery funding now stands at $728 million.
While Binance characterized the plan as a goodwill effort to support its users, industry observers said the move may also aim to prevent reputational fallout at a time when regulators are tightening oversight of centralized exchanges. Some users have questioned whether the incident revealed deeper weaknesses in Binance’s internal pricing systems and risk management infrastructure.
Investor Takeaway
Mixed Reaction From the Trading Community
The relief program drew divided responses on social media platform X. Some users, such as @SeedliCapital, praised the exchange for taking swift action, saying the move “helps restore market confidence.” Others accused Binance of deflecting blame for technical failures that worsened losses during the crash.
“Your internal price oracles mispriced assets and caused billions in forced liquidations,” wrote user @Curb.sol. “Everyone needs to get their funds off Binance immediately.” Another trader, @LeveragedDegen, dismissed the gesture as insufficient: “A voucher for $4 to $6k for users who lost everything is kinda a joke.”
Despite the backlash, Binance’s response has been more extensive than that of most major exchanges following past market disruptions. Whether it succeeds in restoring user confidence—or simply reinforces calls for stricter oversight—will depend on how effectively the promised compensation reaches traders in the coming days.