Binance will pay $283 million in compensation following the altcoin crash.

The world's largest cryptocurrency exchange, Binance, announced that it will compensate its users a total of 283 million dollars due to discrepancies experienced with assets such as USDe, BNSOL, and WBETH during the sharp price drops that occurred on Friday, October 10. While this development has attracted the attention of investors, it also raises questions about the loss of trust in the exchange.

Binance stated that the compensation payments to users would cover all those trading in Binance Earn, futures, margin, and loan markets. The exchange emphasized that the collapse in question was not related to a "depeg-induced collapse," but rather a price discrepancy following the market collapse. According to exchange data, the drop occurred around 21:20 UTC on October 10, while the discrepancies in USDe and other altcoins became apparent after 21:36.

According to Binance’s statement, the anomalies experienced during such a drop were also linked to the activation of limit orders from 2019 that had been open for a long time in the system. This situation reportedly caused significant declines in some altcoins like ATOM. Binance co-founder Yi He stated in a social media post, "Binance never hides its mistakes and does not shy away from its responsibilities. The transactions in our users' accounts are being examined one by one, and losses caused by Binance will be compensated," he said. However, it was emphasized that losses resulting from market fluctuations or unrealized profit losses would not be compensated.

To prevent similar situations from recurring, Binance plans to make some technical adjustments. As part of this plan, a "soft price floor" will be added to the reference index for USDe, and discrepancies will be limited in cases of liquidity imbalance. Additionally, a comprehensive upgrade is expected to clear old limit orders from the system. Following the compensation implementation, Binance’s local token BNB showed signs of recovery, increasing by 11.8% over the 24 hours period. A similar rise was observed across the broader cryptocurrency market, with the GM30 index, which tracks the top 30 assets, gaining 6.8%.

Binance's compensation program presents the largest user repayment opportunity in the company’s history, and reviews for some users are still ongoing. Investors will closely monitor how the process evolves and the new measures the exchange will take.