Binance has announced plans to compensate users who experienced losses due to volatility during a major market crash this past Friday. The exchange acknowledged technical difficulties following an influx of user activity that led to trading instability and significant price fluctuations. Affected users are encouraged to reach out to customer service for claims review and individual compensation will be determined on a case-by-case basis. Binance co-founder Yi He and CEO Richard Teng have issued apologies, emphasizing the need for improvement and stronger commitment going forward. The company has identified three tokens – Ethena’s USDe, Binance’s BNSOL, and Wrapped Beacon token WBETH – where depeggings triggered a cascade of liquidations exceeding $19 billion in the last 24 hours. The compensation process will vary depending on the level of impact for each user, with special attention given to those affected by substantial losses or platform lag.
Binance is facing calls for regulatory scrutiny following this event, as some industry leaders like Crypto.com’s CEO call for measures to ensure fair exchange practices and protect consumer interests.