Binance has announced plans to compensate users affected by its platform latency issues between October 10 and 11. The crypto market was thrown into chaos, triggered by a massive liquidation wave and record trading volumes far exceeding the capacity many exchanges, including Binance, were used to.
Binance experienced delays and system strains. Now that the dust has settled, the exchange has voluntarily promised to compensate users for the disruption, particularly focusing on the issues.
Binance set to compensate affected users
In response to the disaster that hit the market, Binance co-founder and Chief Customer Service Officer Yi He has issued a public apology via X (formerly Twitter). She announced the exchange’s plans to compensate users whose losses were directly attributable to platform issues, rather than normal market fluctuations. “Binance will handle the issues related to Binance,” she wrote, while emphasizing that there would be no compensation for “personal trading losses caused by price fluctuations or unrealized losses.”
Teng’s message was more heartfelt, beginning with an acknowledgment of the turbulent past day and an apology to those impacted. “We don’t make excuses — we listen closely, learn from what happened, and are committed to doing better,” he added. “If you’re still experiencing any unresolved issues, please reach out to our Binance Support team. Every case will be handled with the care and attention it deserves, and compensation will be provided where applicable.”
Teng ended the message by pointing out that volatility is a part of the market, encouraging users to stay informed and cautious during these times. As earlier stated, Binance experienced significant platform strain during the period of extreme market volatility that caused delays in order execution, API latency spikes, and display issues for users—particularly impacting staking products, stablecoins, and futures trading.
The unprecedented trading volumes led to a massive liquidation cascade across the crypto sector, wiping out approximately $19.3 billion in leveraged positions globally and affecting more than a million traders. The Binance platform was one of the hardest hit, as it accounted for about $2.3 billion of the total liquidations. Its native token was not spared either; the volatility influenced rapid market movements, leading to an almost 10% dump in BNB.
