Binance commits to compensation after the historic volatility of the cryptocurrency market
The widespread “exchange crash” incident during the severe volatility
During the two days of October 10-11, the cryptocurrency market fell into chaos as over $19.3 billion in leveraged positions were liquidated, affecting more than 1 million traders globally.
Transaction volumes surged beyond the processing capacity of many major exchanges, with Binance being the most heavily impacted, suffering losses of about $2.3 billion.
The exchange's system experienced order delays, API congestion, and display errors, particularly in staking products, stablecoins, and futures contracts.
Binance's $BNB lost nearly 10% of its value in just a few hours.
Binance apologizes and promises to compensate affected users
After the market stabilized temporarily, co-founder Yi He issued a public apology on X, committing to compensate users affected by the system error, but excluding “personal losses due to price fluctuations or unrealized profits.”
CEO Richard Teng also sent a heartfelt message:
“We do not make excuses — we listen, learn, and commit to doing better. If you continue to experience issues, please contact Binance support. Each case will be handled carefully and compensated where appropriate.”
He also emphasized that volatility is an inevitable part of the market, advising users to be cautious and stay updated continuously.
How did other exchanges respond?
While Binance took responsibility and promised compensation, other exchanges remained silent. The CEO of OKX asserted that their system “operated stably worldwide,” but many traders countered, accusing centralized exchanges (CEX) of manipulating the market and calling for investigations, even lawsuits.
Some notable figures like Arthur Hayes and the CEO of Crypto.com also stated that regulatory authorities need to step in to clarify the real causes behind this collapse.
