TLDR
- Binance rolls out $400 million relief program with $300 million in vouchers and $100 million loan fund for traders affected by October 10-11 market crash
- Eligibility requires minimum $50 loss from forced liquidations representing 30% or more of total portfolio value
- Friday’s crash liquidated $19 billion in positions after Trump announced 100% China tariffs, marking crypto’s largest liquidation event
- Combined with previous commitments, Binance and BNB Chain pledge $728 million total in recovery support
- Exchange denies liability but aims to restore trader confidence following technical issues and pricing discrepancies
Binance announced a $400 million relief program Tuesday to support traders impacted by Friday’s crypto market crash. The world’s largest cryptocurrency exchange is distributing funds despite maintaining it holds no liability for user losses.
The program consists of two components. First, $300 million will be distributed as token vouchers ranging from $4 to $6,000. Second, a $100 million low-interest loan fund will support ecosystem and institutional users.
Traders who experienced forced liquidations between October 10, 2025 at 00:00 UTC and October 11, 2025 at 23:59 UTC can apply. They must have lost at least $50 in the crash. Those losses must equal at least 30% of their net assets based on an October 9 snapshot.
Binance expects to complete voucher distribution within 96 hours through its Rewards Hub. The exchange will calculate voucher amounts based on liquidation loss amount, loss ratio, and other factors.
Understanding the Market Crash
Friday’s market turmoil followed President Donald Trump’s announcement of 100% tariffs on Chinese imports. The sell-off triggered over $19 billion in liquidated leveraged positions within 24 hours.
Data from Coinglass shows approximately 1.7 million traders faced liquidations. The event represents the largest single liquidation in cryptocurrency history.
Binance faced multiple complaints after the crash. Traders reported technical glitches preventing position closures during peak volatility. Others identified stablecoin pricing discrepancies on the platform.
Several altcoins including Enjin, Cosmos, and IoTeX temporarily displayed $0 prices on Binance. The exchange attributed these issues to oracle data problems.
Total Recovery Commitments
The new $400 million program adds to existing recovery measures. BNB Chain launched a $45 million airdrop Monday for memecoin traders affected by the crash.
Binance previously committed $283 million in immediate compensation. That funding targeted holders of USDE, BNSOL, and WBETH tokens that depegged during the volatility.
Together, Binance and BNB Chain have pledged $728 million in total recovery support. The exchange emphasized these measures aim to rebuild industry confidence.
Binance published a statement Sunday addressing user concerns. The company said its core futures systems operated normally throughout the sell-off despite widespread complaints.
Co-founder Yi He apologized Saturday for platform issues. She specifically addressed the depegging of Ethena’s USDe stablecoin, Binance’s BNSOL token, and WBETH liquid staking token.
User Reactions Mixed
Social media responses to the relief program vary widely. Some users praised Binance for taking action to restore market confidence.
Critics argued the compensation falls short. One user called vouchers of $4 to $6,000 insufficient for traders who lost entire portfolios.
Another trader blamed Binance’s mispriced internal oracles for the crash. They urged users to withdraw funds from the platform immediately.
The loan fund targets institutional and ecosystem participants experiencing liquidity pressures. Binance said the capital injection will help partners maintain stable operations and restart trading activities.
The exchange clarified its relief program does not constitute acceptance of liability. The company frames the initiative as voluntary support for the crypto community during challenging market conditions.
