TLDR
- Binance will pay $283 million to users impacted by stablecoin depegs and technical problems during Friday’s market crash
- Over $7 billion in liquidations happened within one hour after Trump announced tariffs on Chinese goods
- Bitcoin fell to $102,000 but has recovered to $114,913 as markets stabilize
- Assets like USDe, BNSOL, and WBETH temporarily lost their peg and were used as collateral
- CEO Richard Teng apologized and promised better systems to prevent future issues
Binance revealed a $283 million compensation package for users hurt by last week’s market turmoil. The program covers two groups: traders whose positions were liquidated and users who faced delays with transfers or redemptions.
Friday’s crash saw unprecedented volatility across crypto markets. More than $7 billion in leveraged positions were wiped out in just 60 minutes.
The selloff started when President Trump revealed plans for steep tariffs on Chinese imports. Bitcoin crashed from recent highs to $102,000 during the panic.
Binance stated its main systems stayed online throughout the chaos. The exchange blamed external economic factors for most of the volatility.
But technical problems emerged after the initial crash. Several stablecoins temporarily depegged from their target values.
Collateral Assets Depeg During Crash
USDe, BNSOL, and WBETH all experienced price swings. These tokens were being used as collateral in Binance Earn products.
The depegging forced automatic liquidations for some users. High trading volumes overwhelmed certain systems and caused transaction delays.
Binance co-founder Yi He addressed the failures in a public statement. She asked affected users to submit claims through customer support.
The exchange will review and compensate verified losses from technical errors. Normal market losses and unrealized profits are not covered.
Data from CoinGlass shows 1.6 million traders were liquidated in 24 hours. Total losses across all exchanges topped $19 billion.
DeFi Protocols Handle Volume Without Issues
Decentralized exchanges performed better during the crisis. Uniswap recorded $10 billion in daily trading volume with no downtime.
Aave processed $180 million in liquidations within an hour smoothly. Major DeFi platforms reported zero technical failures during peak activity.
CEO Richard Teng issued an apology for the exchange’s performance. He said rebuilding user confidence is the company’s main focus now.
Binance explained that some extreme price drops were caused by old limit orders. These orders had been sitting dormant for years before executing.
Markets Begin Recovery Phase
Bitcoin has gained 3.74% and now trades near $114,913. The recovery started after Trump walked back some tariff threats.
Trader Peter Brandt reversed his bearish outlook on major cryptocurrencies. He now expects Bitcoin, Ethereum, XRP, and XLM to rise.
Michael Saylor suggested Strategy might buy more Bitcoin soon. The global crypto market has regained $194 billion since Friday’s low point.
Binance warned users that volatility creates risks in crypto trading. The exchange committed to upgrading risk management systems and improving liquidity safeguards to handle extreme market conditions better in future events.
