Binance to Compensate Users After Ethena’s USDe Depeg During Crypto Market Crash

Binance said it will compensate users affected by Friday night’s massive crypto selloff that caused several tokens to depeg, including Ethena’s stablecoin USDe. The exchange confirmed that users who experienced losses due to platform issues during the market crash will receive case-by-case compensation.

Binance’s Yi He Admits Platform Strain, Promises Compensation

The company’s co-founder and chief customer support officer Yi He apologized to users on Saturday. She said Binance had experienced degraded performance during the high volatility.

Yi He explained that the issues came after a surge in trading activity as prices plunged across major markets following President Trump’s new tariffs on China. “If you have incurred losses attributable to Binance, please contact our customer service to register your case,” Yi He wrote on X.

She said each account would be reviewed individually to determine compensation eligibility. However, she clarified that losses from normal market moves and unrealized profits would not be covered.

Binance Pledges Transparency in Compensation

Yi He confirmed that users who acquired discounted depegged tokens during the event will keep them, saying “there are no excuses or justifications” for how the situation unfolded. Wealth management users involved with the affected assets will be compensated gradually.

In addition, users who suffered losses due to latency issues will be reviewed individually. The market crash also hit Binance’s native token. BNB fell nearly 10% in 24 hours, adding to broader crypto losses.

Binance’s Richard Teng Tenders Apology

Binance CEO Richard Teng also addressed the situation, offering a public apology to users. “We don’t make excuses — we listen closely, learn from what happened, and are committed to doing better,” he wrote. Teng emphasized that Binance will maintain transparency as it processes user claims.

The depegs involved three major assets. Ethena’s USDe stablecoin, Binance’s liquid staking token BNSOL, and Wrapped Beacon ETH (WBETH). USDe, designed to stay at $1, dropped to as low as $0.66 at the peak of the selloff. The crypto market lost over $670 billion in value due to auto-liquidations on centralized exchanges.

According to data from CoinGlass, nearly 1.7 million traders were liquidated within 24 hours, wiping out about $19.3 billion in open interest. Binance recorded one of the largest liquidation totals, behind Hyperliquid and Bybit, with $1.4 billion in long and $981 million in short positions erased.

Binance Outlines 72-Hour Compensation Plan and New Risk Controls

According to an official statement released on Binance’s support page, all affected Futures, Margin, and Loan users will be compensated. Those who held USDe, BNSOL, or WBETH as collateral during the depeg between 21:36 and 22:16 UTC on October 10 are eligible. Binance said the payouts will be automatically distributed to user accounts within 72 hours.

The exchange explained that the compensation amount will be the difference between the market price at 00:00 UTC on October 11 and each user’s liquidation price. Users whose cases fall outside the defined window can still contact customer support for evaluation.

In addition, Binance announced a series of new risk control enhancements to prevent future disruptions. These include adding the redemption price to the BNSOL, WBETH, and USDe price index weights. Binance will also set a minimum price threshold for USDe. This is to improve stability and increase the frequency of risk parameter reviews.