Cryptocurrency Exchange Binance has issued a statement on market volatility that affects the encryption market on October 10, 2025.
The platform claims that during the event, its main engines remained operational and that the volume of forced clearance underwent binance platform represented a relatively low rate to the total volume of transactions.
However, it provides compensation to customers affected by Depegging issues within 24 hours after the event.
Binance’s full statement can be read below:
Colleagues Binancians,
Between 2025-10-10 20:50 and 22:00 (UTC), global macroeconomic events caused extreme volatility of the market. Both institutional and retail users are involved in concentrated sales, causing the encryption market to experience a collective sharp decline during this period, resulting in extremely unstable conditions.
I. market review and platform performance
We know the speculation in the market about the causes of this event, with some focusing on the role of the Binance platform. Binance conducted a comprehensive review and can now confirm that during the event, basic future and engines that match engines and API trade remained operational. According to data, the volume of forced clearance underwent binance platform represented a relatively low rate to the total volume of transactions, indicating that this variability is mainly due to overall market conditions.
At the same time, the review confirmed that after 2025-10-10 21:18 (UTC), some platform modules briefly faced technical malfunctions and some assets had release problems due to sudden market fluctuations. Binance remains committed to addressing these issues responsible and transparently, as transparency has always been one of our core values. Consequently, we have completed the compensation for users affected by Depegging issues within 24 hours after the event.
Ii. Compensation plan
According to the authority focusing on users, Binance has taken the following measures:
1. Compensation to win a product depegs
We know the claims that the release of some binance earns products associated with USDE, BNSOL and WBETH, caused market crash and therefore we want to clarify that it did not happen. Extreme market decline occurred before release. The files show that during the sale of the market, prices fell to their lowest point between 2025-10-10 21:20 and 21:21 (UTC), while serious release occurred after 21:36 (UTC) on the same day.
When release influenced some users who had cleared their positions due to the possession of these assets as collateral, Binance took responsibility and has fully covered their losses. Compensation has been distributed in two lots, totaling about $ 283 million. Users may refer to our announcement on this issue for more information.
2. Compensation for internal transport and earn delays of acquisition of products
During the extreme volatility of the market, brief delays in internal capital transport and the return of acquisitions have influenced timely margins. Binance will offset users who have been influenced by verified losses.
3. Continuous review and transparency
Binance is still considering and processing users. We will continue to maintain complete transparency and constantly inform the community about the progress of compensation through the official channels to ensure that the case of each affected user is treated properly.
Iii. Explanation for extreme price movements in certain pairs of points trading
We also know that the community discusses the extremely low prices observed in some trading pairs. We understand the concerns of the community and the users and the Binance team started immediately technical research and data analysis. According to the current findings, the main reasons are as follows:
1. Activate historical limit orders due to one -sided liquidity
Historical boundaries (a few years dating to 2019, for example, Iotx, Atom) remained open on the platform. During the market sales and the lack of market orders, sales orders continue to execute these long -term marginal orders, promoting symbols to reduce abruptly.
Please note: Binance Futures uses a point price mechanism that automatically deducts or excludes abnormal price components to prevent unfair clearances due to such abnormal market movements. Mark Price is also available in the K-Line chart for verification.
2.
Some trading pairs (such as Iotx/USDT) have recently reduced the number of decimal places allowed for minimal prices, causing prices on the user interface to be zero, which is a problem of appearance and not because of the actual zero value.
3. Subsequent optimization and improvements
Binance will optimize UI appearance and implement UI display corrections for relative abnormal prices (no separate announcements will be released) to ensure a better commercial experience in the future. The API interconnection will remain unaffected.
We sincerely thank all users for understanding and supporting them during this incident. Binance will continue to hear users ‘comments, learn from experience and deal with users’ issues and concerns open and transparent. We remain committed to continuous improvement of system performance and risk control, enhancing platform safety and stability under extreme market conditions and providing safer, more transparent and higher commercial experience for users worldwide.
Finally, we would like to remind our community that the encryption market is extremely unstable and poses inherent risks. Invest and market in your media, manage your positions responsibly and exercise proper risk control. If we find suspicions of market surveillance transactions after our thorough surveys, we will refer to the regulator as needed.
Thank you for your support!
Binance team