Binance compensated users $283 million after several tokens lost their pegs during the crash, prompting scrutiny of its oracle and liquidity systems.
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Posted October 13, 2025 at 9:37 am EST.
Crypto exchange Binance compensated affected users after several major tokens — including USDe, BNSOL, and WBETH — lost their pegs during a period of extreme market volatility on Friday.
Binance said it paid out around $283 million in compensation in two batches to Binance Earn users, after reviewing all futures, margin and loan users over a period of 72 hours.
The exchange also plans to implement additional safeguards to prevent another depeg event from occurring. Those safeguards include adding a redemption price to the BNSOL, WBETH, and USDe price index weights and using a minimum price threshold to the USDe index rule to improve price stability.
“When we fall short, we take responsibility—there are no excuses or justifications,” said Binance co-founder Yi He in a Saturday X post.
Pseudonymous onchain analyst @DeFi_Hanzo pointed out a series of transfers from major crypto market maker Wintermute that suggest “something was off” about Binance’s order books.
This story is an excerpt from the Unchained Daily newsletter.
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Wintermute transferred $700 million to Binance, of which $200 million was in bitcoin. When liquidation pressure was at its highest point, the market maker allegedly pulled liquidity.
“On every other exchange you could close, hedge, or buy the dip manually. On Binance, buttons stopped working. Stop orders froze, limit orders hung,” said @DeFi_Hanzo.
“Only liquidations were executed perfectly (but not in the way should have been executed).”
Ethena founder Guy Young also described the USDe depeg as one that was isolated to Binance, on account of the exchange using oracle data from its own orderbook, as opposed to the ones with the deepest liquidity.
“Unfortunately we cannot control how each platform implements and manages their own oracle and risk management designs,” said Young.
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