Binance pays $283 million in compensation following Friday’s depegs, covering user losses

Binance, the world’s largest crypto exchange by volume, said it compensated users of three Binance Earn assets to the tune of $283 million after Friday’s volatility caused the assets to depeg from their intended price. 

Binance executives apologized to users after Friday’s market downturn apparently triggered assets in three Binance Earn markets — for Ethena’s stablecoin USDe, Binance-issued Solana liquid staking token BNSOL, and Wrapped Beacon liquid staking token WBETH — to depeg from their intended prices. Ethena’s USDe, intended to be pegged to $1, briefly fell below $0.66 on Binance. 

Binance says compensation was for futures, margin, and loan users who held USDE, BNSOL, or WBETH as collateral and were impacted between 21:36–22:16 UTC, plus users with verified losses from internal transfers/Earn redemptions. Despite the issues on Binance, the assets did not depeg as significantly on other venues. 

“I do not think it is accurate to describe this is a USDe depeg when a single venue was out of line with the deepest pools of liquidity that experienced no abnormal price deviations whatsoever,” Ethena Labs CEO and co-founder Guy Young wrote on X, in response to the incident. 

On Sunday, Binance announced that $283 million in compensation has been paid to affected users, in two batches. The exchange also downplayed some social media rumors that an attack on Binance caused a depeg, which then led to the broader market crash. 

“The extreme market downturn occurred before the de-pegging,” Binance’s post states. “Records show that during the market sell-off, prices fell to their lowest point between 21:20 and 21:21 (UTC) on October 10, 2025, while the severe de-pegging occurred after 21:36 (UTC) on the same day.”

In a separate post, Binance elaborated on the changes it will make to the affected markets to safeguard against future depegs, adding the assets’ redemption prices to the index weights to stabilize future wobbles and installing a soft price floor in the reference index for USDe. 

Finally, the exchange addressed extreme price movements in tokens like IOTX and ATOM, the latter of which reportedly fell below $0.01 on Binance before rebounding to its current price of around $3.50. 

“Historical limit orders (some dating back years, as far as 2019, e.g., IOTX, ATOM) had remained open on the platform,” Binance wrote. “During extreme market sell-off and the lack of buying orders, sell orders continue to execute against these long-standing limit orders, pushing token prices to sharply drop momentarily.” Binance also said the IOTX/USDT trading pair displayed a value of $0, because the exchange’s website didn’t render enough decimal places, and it plans to fix this display issue. 

The price of BNB, the native token of Binance-linked BNB chain, has risen 11.8% in the past 24 hours, according to The Block’s BNB Price page, amid a broader rebound in asset prices. The Block’s GM30 Index, which tracks the price of the top 30 cryptocurrencies by market capitalization, is up 6.8% over the past day, as of publishing time. 

The exchange may still have more compensation to distribute. “Binance is still reviewing and processing user cases,” the exchange’s post states. 

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