Binance, the world’s largest cryptocurrency exchange, announced a $400 million recovery package to assist traders and institutional partners impacted by the weekend’s market turmoil. The move follows a major glitch that disrupted trading and triggered widespread forced liquidations between October 10 and 11.
The initiative—titled the “Together Initiative”—aims to restore user confidence after the sudden depegging of Ethena Labs’ USDe, BNSOL, and WBETH tokens caused billions in losses across the crypto derivatives market. Binance confirmed the plan on Tuesday, saying the fund will “rebuild trust and reinforce market stability.”
According to Binance, the relief effort will combine direct user compensation with institutional support to ease liquidity strains and ensure operational continuity for affected entities.
Compensation for Impacted Traders
Binance will allocate $300 million in USDC stablecoin to compensate retail users who suffered significant losses during the crash. Eligible traders include those whose liquidation losses exceeded $50 and represented at least 30% of their portfolio value at the time of the incident.
Payouts are expected to begin within 24 hours of verification and conclude within four days. Funds will be credited directly to users’ spot accounts to ensure transparency and speed of recovery.
In addition, Binance will introduce a $100 million Institutional Support Program—a liquidity facility offering low-interest loans to institutional clients and ecosystem partners most affected by the crash. This initiative aims to help firms resume trading operations and maintain ecosystem stability.
Key details of Binance’s relief plan:
- $300 million in USDC compensation for users
- $100 million in institutional support loans
- 24–96 hour payout window
- Focus on liquidity recovery and user trust
Technical Fixes and Industry Response
Binance attributed the weekend’s disruption to a technical glitch that caused price distortions between 21:36 and 22:16 UTC on October 10. The exchange has since reviewed its systems and implemented new safeguards to prevent similar incidents.
These include:
- Integrating redemption prices into price index weights
- Introducing minimum price thresholds for USDe
- Increasing the frequency of risk parameter reviews
Industry analysts view the $400 million relief fund as both a damage-control effort and a strategic confidence boost amid rising competition and scrutiny of centralized exchanges.
In a statement, Binance emphasized its commitment to user protection: “We expect scrutiny—fair or unfair—but our users remain our top priority. Restoring confidence is critical to the future of this industry.”
By proactively addressing losses and tightening technical controls, Binance positions itself as a responsible market leader determined to safeguard users and reinforce long-term faith in the crypto ecosystem.
