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- Binance paid $283 million to users affected by USDe, BNSOL, and WBETH depegs.
- The exchange denied that the depeg triggered the wider market crash.
- New measures, including a soft price floor, aim to prevent future volatility.
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Binance, the world’s largest cryptocurrency exchange, has compensated users with over $283 million following a chaotic market episode that caused several assets to temporarily depeg from their intended values. The payout covered users affected by Friday’s intense volatility, which impacted Ethena’s USDe stablecoin, Binance’s BNSOL, and Wrapped Beacon ETH (WBETH).
Market Turmoil Triggers Depegging Across Select Assets
During the October 10 market crash, USDe briefly plunged to $0.66, while BNSOL and WBETH also lost parity on Binance. The exchange confirmed the depeg occurred between 21:36 and 22:16 UTC, primarily affecting futures, margin, and loan users holding these tokens as collateral.
However, Binance clarified that the price dislocation was limited to its platform, with other exchanges showing minimal impact. Ethena Labs CEO Guy Young echoed this, noting that liquidity across deeper pools remained stable, disputing claims of a systemic USDe depeg.
On events of last Friday to be absolutely clear:
— G | Ethena (@gdog97_) October 12, 2025
i) Ethena's mint and redeem function had zero downtime and was processing the largest number of withdrawals in its lifetime – more than $1b in a few hours and $2b in a 24hr period with zero issues.
ii) Primary liquidity venues…
Binance Denies Rumors Linking Depeg to Market Crash
In a statement on Sunday, Binance said rumors of a targeted attack were unfounded. “The extreme market downturn occurred before the de-pegging,” the company wrote, pointing to internal data showing the sell-off bottoming out around 21:20 UTC, shortly before the depeg.
The exchange stressed that compensation was processed in two phases and that further reviews of user claims are ongoing.
Preventive Measures and Technical Fixes Ahead
To prevent similar incidents, Binance plans to update its index weights and introduce a soft price floor for USDe. The exchange also acknowledged abnormal price swings in other tokens like ATOM and IOTX, blaming them on long-standing limit orders dating back to 2019.
Also Read: Binance Coin (BNB) Breaks $1,000: Could $3,000 Be Next?
Binance’s BNB token rose nearly 12% in the aftermath, outpacing the broader market’s 6.8% recovery, suggesting renewed trader confidence despite recent turbulence.
By acting swiftly to compensate affected users and promising stronger safeguards, Binance has attempted to restore market confidence after one of the year’s most volatile trading sessions. The incident underscores the growing need for robust liquidity management and exchange-level risk controls in the evolving crypto landscape.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
