Binance, the world’s largest crypto exchange, is launching a $400 million “recovery and confidence rebuilding plan” meant in part to reimburse users during the largest crypto market flash crash and liquidation event last Friday.
The plan, called the “Together Initiative,” will distribute vouchers between $4 and $6,000, totaling $300 million, to eligible users who lost at least $50 during a forced liquidation on Binance during the pullback. These losses must represent at least 30% of the user’s overall net assets based on a snapshot taken on Friday before midnight to apply.
“The token voucher amount will be determined based on an assessment of each user’s liquidation loss amount, loss ratio, and other multiple factors,” Binance wrote on Tuesday, noting that eligible recipients should receive the funds within 96 hours in the exchange’s Rewards Hub.
The Together Initiative comes on top of the $283 million Binance has already pledged to holders of USDE, BNSOL, or WBETH; tokens that depegged on the exchange, causing cascading liquidity issues.
Additionally, as part of the Together Initiative, Binance is pledging $100 million to establish a low-interest loan fund to help ecosystem and institutional users “restart their trading.”
“We expect this to inject momentum into ecosystem participants’ recovery, alleviate liquidity pressures, and maintain stable operations for ecosystem partners,” Binance wrote. The exchange clarified later that the vouchers and trader fund do not imply the exchange accepts “liability for users’ losses.”
Binance co-founder and chief customer support officer Yi He apologized to users on Saturday, particularly for the depegging of Ethena’s stablecoin USDe, Binance-issued Solana liquid staking token BNSOL, and Wrapped Beacon liquid staking token WBETH on the exchange, largely driven by an influx of users and market volatility.
Nearly $20 billion in open interest was wiped out in the 24 hours after President Donald Trump announced he would impose 100% tariffs on imports from China. Some 1.7 million traders were liquidated, according to Coinglass data, in what may be the biggest liquidation event in crypto’s history.
“As with other challenging periods in crypto’s short history, we will get through this together, as one industry. We remain confident in our industry’s future. Finally, we would like to remind our community and users again that the crypto market is volatile and investment risks are inherent,” Binance noted.
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