Binance Promises Compensation After Market Meltdown Hits Users

A wave of chaos swept through the crypto market Friday night, and Binance, the world’s largest exchange, wasn’t spared.

As prices swung violently and user traffic surged, parts of the platform struggled to keep up – leaving some traders facing unexpected losses.

By Saturday morning, Binance’s leadership moved to address the situation. Co-founder Yi He apologized publicly, admitting the platform’s systems had been strained by the massive influx of traders during the volatility. She invited affected users to contact customer support for individualized compensation reviews, clarifying that Binance would cover losses caused by technical issues but not normal market fluctuations.

Three tokens in particular were hit hard: Ethena’s USDe stablecoin, Binance’s Solana liquid staking token BNSOL, and Wrapped Beacon’s WBETH—all of which temporarily lost their pegs, with USDe plunging to around $0.66. Yi He emphasized that users who profited by buying depegged assets cheaply would not have their gains reversed.

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CEO Richard Teng also issued an apology, promising to strengthen Binance’s systems and rebuild user confidence. “We don’t make excuses,” he said. “We learn and improve.”

The turbulence rippled through the wider market. Binance’s BNB token fell nearly 10% in 24 hours but still overtook XRP as the third-largest non-stablecoin by market cap. Data from Coinglass revealed an eye-popping $19 billion in liquidations over the same period, affecting about 1.7 million traders worldwide. Binance recorded roughly $2.4 billion in total liquidations, trailing only Hyperliquid and Bybit, though it saw fewer long positions wiped out compared to rivals.

In the wake of the chaos, Crypto.com’s CEO Kris Marszalek urged regulators to examine exchanges that experienced unusually high liquidation volumes, calling for greater oversight to protect consumers and ensure fair market practices.

As Binance works through compensation claims, the event serves as a stark reminder of how extreme volatility can expose even the strongest platforms – and how exchanges respond when users bear the brunt may determine long-term trust in the industry.