Binance announced that there is no problem during the market decline.

Last week, the significant decline in the cryptocurrency market caused unease among investors. On October 10, following the market crash, the world's largest cryptocurrency exchange, Binance, made a detailed statement regarding the situation.

Binance stated that the majority of its systems were operational and that the crash was entirely due to a global sell-off. The company emphasized that the total liquidations on the platform remained at low levels across the market. However, due to price deviations in certain assets like USD Coin, BNSOL, and WBETH, some users suffered financial losses. Binance announced that it would make a total compensation payment of $283 million to cover these losses. The statement included, “The market crash occurred before the depeg. Low points were observed at 21:20 UTC, while price deviations occurred after 21:36.”

Additionally, it was reported that verified losses for users experiencing internal transfer delays in Earn products would also be compensated. Binance provided an explanation for the sharp decline in the prices of IOTX and ATOM, which caused significant debate within the community. According to the exchange, open limit orders from 2019 were activated during the sudden sell-off, leading to the prices of these tokens approaching zero. Binance clarified that this was not a “zero price error” but an issue related to the change in decimal display on the interface.

In its message to users, Binance stated, “Transparency and user trust are our core values. We will never shy away from problems.” It was conveyed that cases related to the victims are still under investigation and that additional payments may be made if necessary. The company announced plans for technical improvements, such as interface optimizations, more advanced risk control mechanisms, and better price indicators, in the future. This situation is recorded as the largest user protection operation in Binance's history and highlights that the company will strengthen its risk management infrastructure to prevent similar incidents in the future.