Binance unveils fresh $400 million plan to support weekend crash recovery

Binance has announced a $400 million relief package for some of its users who were affected by the market crash that occurred over the weekend between Friday, October 10, and Saturday, October ￰0￱ package is aimed at restoring user confidence and industry stability following a crash that saw some tokens depeg and billions wiped from the crypto derivatives ￰1￱ world’s largest crypto exchange said on Tuesday that the initiative, dubbed the “Together Initiative,” would provide both user compensation and institutional support as it works to rebuild trust after the ￰2￱ announcement comes days after Binance experienced a high-profile glitch that caused Ethena Labs’ USDe and two tokens, BNSOL and WBETH, to briefly lose their pegs, triggering forced liquidations and drawing widespread ￰3￱ had earlier pledged to compensate affected ￰4￱ promises compensation for affected users In its statement , Binance said that it will distribute up to $300 million in USDC stablecoin to individual traders who experienced forced liquidations between October 10 and 11, during the most volatile hours of the ￰5￱ users are those whose liquidation losses exceeded $50 and represented at least 30% of their net asset value at the time.

Payouts, which the company said will begin within 24 hours and conclude within 96 hours, will be sent directly to spot ￰6￱ addition, Binance will establish a $100 million “Institutional Support Program” to offer low-interest loans to ecosystem partners and institutional clients hit hardest by the ￰7￱ fund, designed to alleviate liquidity pressures and help firms resume trading operations, will be accessible to eligible VIP clients through their account managers. A glitch caused the weekend’s price distortions The new initiative follows Binance’s earlier October 11 announcement that it would fully compensate users affected by the depeg event, which occurred between 21:36 and 22:16 UTC on October ￰8￱ that window, a glitch caused price distortions for USDe, BNSOL, and ￰9￱ said it has since completed a review and promised to reimburse all impacted users who experienced forced liquidations across Futures and Margin trading from 00:00 of October 10 to 23:59 UTC of October ￰10￱ company also introduced several technical safeguards to prevent a repeat, including adding redemption prices into the price index weights of affected tokens, incorporating minimum price thresholds for USDe to improve stability, and conducting more frequent reviews of its risk ￰11￱ observers view Binance’s $400 million relief fund as a symbolic show of solidarity amid intensifying pressure and competition from other platforms.

Binance’s handling of this episode positions it as an empathetic brand that takes responsibility for the challenges users faced when using the ￰12￱ company said the relief package should not be confused as it taking liability for users’ losses. “We expect scrutiny, fair or unfair,” Binance said, adding that its users “are always our first priority.” According to the leading exchange, “It is critical to rebuild industry confidence” after a period of volatility and scrutiny. “This stems from our belief in the long-term development of the industry and our commitment to Binance’s User Focus values,” the company said in the ￰13￱ your free seat in an exclusive crypto trading community - limited to 1,000 members.