Binance Announcement : Statement on Recent Market Volatility and Latest Progress Update on User Protection Measures

Fellow Binancians,
Between 20:50 and 22:00 (UTC) on October 10, 2025, global macroeconomic events triggered extreme market volatility. Both institutional and retail users engaged in concentrated sell-offs, causing the cryptocurrency market to experience a collective sharp decline during this period, resulting in highly volatile conditions.
I. Market Review and Platform Performance
We are aware of speculation in the market regarding the causes of this event, with some focusing on the role of the Binance platform. Binance has conducted a comprehensive review and can now confirm that during the event, the core futures and spot matching engines and API trading remained operational. According to data, the forced liquidation volume processed by Binance platform accounted for a relatively low proportion to the total trading volume, indicating that this volatility was mainly driven by overall market conditions.
At the same time, the review confirmed that following 21:18 (UTC) on October 10, 2025, some platform modules briefly experienced technical glitches, and certain assets had de-pegging issues due to sharp market fluctuations. Binance remains committed to addressing these issues responsibly and transparently, as transparency has always been one of our core values. Accordingly, we have completed compensation for users affected by the depegging issues within 24 hours after the event.
II. Compensation Plan
In line with our user-focused principle, Binance has taken the following measures:
1. Compensation for Earn Product Depegs
We are aware of claims that the de-pegging of certain Binance Earn products relating to USDE, BNSOL, and WBETH, caused the market crash, and therefore we wish to clarify that it was not the case. The extreme market downturn occurred before the de-pegging. Records show that during the market sell-off, prices fell to their lowest point between 21:20 and 21:21 (UTC) on October 10, 2025, while the severe de-pegging occurred after 21:36 (UTC) on the same day.
Where the de-pegging impacted some users who had their positions liquidated due to holding these assets as collateral, Binance has taken responsibility and has fully covered their losses. Compensation has been distributed in two batches, totaling approximately USD 283 million. Users can refer to our announcement on this matter for more information.
2. Compensation for Internal Transfers and Earn Product Redemption Delays
During the extreme market volatility, brief lags in the internal transfers of funds and Earn product redemptions impacted timely margin top-ups. Binance will compensate impacted users with verified losses.
3. Ongoing Review and Transparency
Binance is still reviewing and processing user cases. We will continue to maintain full transparency and continuously update the community on the compensation progress via official channels to ensure that every affected user’s case is properly addressed.
III. Explanation on Extreme Price Movements in Certain Spot Trading Pairs
We are also aware the community has been discussing the extremely low prices observed in certain spot trading pairs. We understand the community and users’ concerns, and Binance’s team immediately initiated technical investigations and data analysis. According to current findings, the main reasons are as follows:
1. Triggering of Historical Limit Orders Due to One-sided Liquidity
Historical limit orders (some dating back years, as far as 2019, e.g., IOTX, ATOM) had remained open on the platform. During extreme market sell-off and the lack of buying orders, sell orders continue to execute against these long-standing limit orders, pushing token prices to sharply drop momentarily.
Please note: Binance Futures use a mark price mechanism that automatically discounts or excludes abnormal price components to prevent unfair liquidations due to such abnormal market movements. Mark price is also available in the K-line chart for verification.
2. “Zero Price” Display Issue
Certain trading pairs (such as IOTX/USDT) recently reduced the number of decimal places allowed for minimum price movement, causing the displayed prices in the user interface to be zero, which is a display issue and not due to actual zero price.
3. Subsequent Optimization and Improvements
Binance will optimize UI display and apply UI display corrections for related abnormal prices (no separate announcements will be released) to ensure a better trading experience in the future. The API interface will remain unaffected.
We sincerely thank all users for their understanding and support during this incident.Binance will continue to listen to user feedback, learn from experience, and address issues and users’ concerns openly and transparently. We remain committed to continuously improving system performance and risk controls, enhancing platform security and stability under extreme market conditions, and providing a safer, more transparent, and higher-quality trading experience for users worldwide.
Finally, we would like to remind our community that the cryptocurrency market is highly volatile and carries inherent risks. Please invest and trade within your means, manage your positions responsibly, and exercise proper risk control.
Thank you for your support!
Binance Team
2025-10-12
Trade on-the-go with Binance’s crypto trading app (iOS/Android)
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Binance reserves the right in its sole discretion to amend or cancel this announcement at any time and for any reasons without prior notice.
Disclaimer: Digital asset prices are subject to high market risk and price volatility. The value of your investment can go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. For more information, see our Terms of Use and Risk Warning.