Binance to compensate some users after several markets depeg: ‘There are no excuses’

Binance will compensate some users who lost funds during Friday night’s volatility, which led to degraded performance on the world’s largest cryptocurrency exchange, senior executives announced on Saturday. 

Binance co-founder and chief customer support officer Yi He apologized to Binance users Saturday morning in a post on X, saying issues arose after the recent price volatility in the crypto market and amid a “substantial influx of users” to the platform. 

“If you have incurred losses attributable to Binance, please contact our customer service to register your case,” He wrote. “We will review your account activity individually, analyze the situation, and provide compensation accordingly. However, losses resulting from market fluctuations and unrealized profits are not eligible for compensation…When we fall short, we take responsibility—there are no excuses or justifications.”

Binance appears to be looking specifically at issues in the markets for three tokens: Ethena’s stablecoin USDe, Binance-issued Solana liquid staking token BNSOL, and Wrapped Beacon liquid staking token WBETH, according to an announcement. Each of the three tokens saw dramatic depegs on Friday night, with USDe, designed to keep its $1 peg, falling below $0.66. 

Binance CEO Richard Teng, who took over the role from co-founder Changpeng “CZ” Zhao in 2023, likewise apologized to Binance users in a post on X. 

“I’m truly sorry to everyone who was impacted,” Teng wrote. “We don’t make excuses — we listen closely, learn from what happened, and are committed to doing better.”

It’s currently unclear how many impacted users will be entitled to compensation from Binance. The Block could not immediately reach Binance for comment. 

“Those who acquired depegged assets at low prices yesterday earned them by staying up late, and we will not reclaim those. For wealth management users involved with the three depegged packaged assets, the process is being handled gradually. For trading users who experienced losses or liquidations due to platform latency issues, we will address each case individually,” He wrote in a follow-up post. 

The price of BNB, the native token of Binance-linked BNB Chain, has dropped about 9.6% over the past 24 hours, according to The Block’s BNB Price page. BNB recently flipped XRP to become the third-largest non-stable cryptocurrency by market capitalization. 

Daily liquidations near $20 billion

Crypto traders have seen liquidations worth over $19.3 billion in the past 24 hours, according to Coinglass data, affecting some 1.7 million traders. Some traders are calling the past day one of the biggest liquidation events in crypto’s history. 

Binance saw the third-largest sum of liquidations, after Hyperliquid and Bybit, with $1.4 billion in longs and $981.6 million in shorts erased in the past day. Binance’s ratio of only around 59% long liquidations compared to shorts is significantly lower than most exchanges, which generally saw more than 85% of liquidations affect long positions, the data show.  

Amid the fallout, Crypto.com CEO Marszalek called on regulators to look into exchanges that saw a high volume of liquidations in a post on X. 

“Regulators should look into the exchanges that had most liquidations in the last 24h and conduct a thorough review of fairness of practices,” Marszalek wrote. “$20B in liquidations, a lot of users got hurt. The job of regulatory bodies is to protect the consumers and assure market integrity.”

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