- Binance pledges compensation after volatility hits users and disrupts trading.
- Yi He and Richard Teng apologize as Binance investigates token depegs.
- Massive $19 billion liquidations spark regulatory calls across crypto markets.
Binance has announced plans to reimburse certain users who lost funds during severe crypto market volatility Friday night. The firm said operational issues followed a surge of users and intense price swings and have affected trading stability.
According to Binance co-founder and chief customer support officer Yi He, the problems occurred when the influx of users overwhelmed the system amid volatility. She asked affected users to contact customer service and register their claims so each account can be reviewed. She clarified that compensation would not cover losses from market swings or unrealized profits.
Yi He added that Binance would not reclaim gains obtained by trading depegged assets at low prices. Yet for wealth-management users tied to three unstable packaged assets, the compensation process will unfold gradually. Meanwhile, she stated that for trading users hit by liquidations or platform lag, each case will be handled individually.
Chief executive Richard Teng also apologized to users, saying Binance will listen, learn, and take responsibility. He remarked the firm does not offer excuses, and pledged stronger commitment going forward.
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Focus on Three Depegged Tokens
Binance flagged troubles in three particular tokens: Ethena’s stablecoin USDe, Binance’s liquid staking token BNSOL, and Wrapped Beacon token WBETH. Each token suffered a sharp depeg late Friday, with USDe falling below $0.66. These disruptions chiefly drive Binance’s compensation plan.
Over the past 24 hours, global liquidations exceeded $19.3 billion across exchanges according to Coinglass data. Binance alone accounted for about $1.4 billion in long liquidations and $981.6 million in shorts. The exchange’s long-liquidation ratio stood around 59 percent, noticeably lower than the typical 85 percent ratio seen elsewhere.
Some industry voices demanded regulatory scrutiny following the liquiation surge. Crypto.com’s CEO urged regulators to examine exchanges with exceptionally high liquidation volumes, calling it a matter of fairness and consumer protection.
As of now, Binance has not disclosed how many users will qualify for reparations. The company continues to review affected accounts and evaluate compensation amounts on a case-by-case basis.
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