Binance has released a statement regarding recent market volatility and the latest developments in user protection measures.
During the period from 20:50 to 22:00 UTC on October 10, 2025, global macroeconomic events triggered extreme market volatility. Both institutional and individual users engaged in concentrated selling behavior, causing the cryptocurrency market to experience collective significant declines during this period, with markets entering a state of high volatility.
**I. Market Review and Platform Operations**
We have noted market speculation regarding the causes of this event, with some speculation focusing on Binance's role. Binance has conducted a comprehensive review and can currently confirm that during the incident, the platform's core futures and spot matching engines and API trading functions all maintained normal operations. Data shows that the proportion of forced liquidations processed by Binance relative to total trading volume was relatively low, indicating that this volatility was primarily driven by overall market conditions.
Additionally, the review confirmed that after 21:18 UTC on October 10, 2025, some platform modules experienced brief technical failures. Due to severe market volatility, some assets experienced depegging issues. Binance is committed to addressing such issues with a responsible and transparent approach - transparency has always been one of our core values. Accordingly, we completed compensation for users affected by depegging issues within 24 hours of the incident.
**II. Compensation Plan**
Adhering to the "users first" principle, Binance has taken the following measures:
**1. Compensation Related to Financial Product Depegging**
We have noted claims that depegging of certain Binance financial products (related to USDE, BNSOL, WBETH) caused the market crash, and we hereby clarify that this is not the case. The extreme market decline occurred before the depegging. Records show that during the market sell-off, prices reached their lowest point between 21:20 and 21:21 UTC on October 10, 2025, while severe depegging occurred after 21:36 UTC on the same day.
For users who held the aforementioned assets as collateral and had their positions liquidated due to depegging effects, Binance has taken responsibility and fully covered their losses. Compensation was distributed in two batches, totaling approximately $283 million. Users can refer to our dedicated announcement on this matter for more details.
**2. Compensation Related to Internal Transfer and Financial Product Redemption Delays**
During extreme market volatility, internal fund transfers and financial product redemptions experienced brief delays, affecting users' ability to add margin in a timely manner. For affected users whose losses have been verified, Binance will provide compensation.
**3. Ongoing Review and Information Transparency**
Binance continues to review and handle user-related cases. We will maintain complete transparency, continuously updating the community on compensation progress through official channels to ensure that every affected user's issues are properly resolved.
**III. Explanation of Extreme Price Fluctuations in Some Spot Trading Pairs**
We have also noted community discussions regarding extreme low prices that occurred in some spot trading pairs. We understand the concerns of the community and users, and the Binance team has immediately initiated technical investigations and data analysis. Based on current investigation results, the main reasons are as follows:
**1. Historical Limit Orders Triggered Due to One-sided Liquidity**
There are still some historical limit orders on the platform (some order history can be traced back to 2019, such as orders for IOTX, ATOM and other tokens). Under conditions of extreme market selling and scarce buy orders, sell orders continued to execute against these long-standing limit orders, causing token prices to briefly decline significantly.
Please note: Binance futures uses a mark price mechanism that automatically excludes or discounts abnormal price components to avoid unfair liquidations caused by such market anomalies. Users can view mark prices in candlestick charts for verification.
**2. "Zero Price" Display Issue**
Some trading pairs (such as IOTX/USDT) recently adjusted the decimal places for minimum price increments, causing prices to display as zero in the user interface. This is a display issue, not an actual price of zero.
**3. Subsequent Optimization and Improvement Measures**
Binance will optimize user interface (UI) displays and correct interface displays for related abnormal prices (no separate announcement will be issued for this), to ensure better trading experiences in the future. API interfaces are not affected by this adjustment.
During this incident, we sincerely thank all users for their understanding and support. Binance will continue to listen to user feedback, learn from experience, and address issues and respond to user concerns with an open and transparent attitude. We remain committed to continuously improving system performance and risk control capabilities, strengthening platform security and stability under extreme market conditions, and providing safer, more transparent, and higher-quality trading services to global users.
Finally, we remind the community that cryptocurrency markets are highly volatile and carry inherent risks. Please invest and trade rationally according to your risk tolerance, manage positions reasonably, and maintain proper risk control.