Binance has pledged to compensate traders affected by system failures during Friday’s market crash that erased more than $19 billion in leveraged positions, marking one of the largest liquidation events in crypto history.
Key Takeaways:
- Binance will compensate verified user losses caused by technical failures during the $19B market liquidation event.
- The exchange faced transaction delays amid record trading volumes after Trump’s tariff threats triggered panic selling.
- DeFi platforms like Uniswap and Aave handled record activity without disruptions, highlighting their resilience compared to centralized exchanges.
The exchange acknowledged that surging trading volumes during the selloff caused transaction errors and order delays, leaving some users unable to exit positions before being liquidated.
“Due to significant market fluctuations and a substantial influx of users, some encountered issues with their transactions,” Yi He, Binance’s co-founder and chief customer service officer, said in a Saturday statement.
Binance to Compensate Users for System Errors
She urged affected users to contact customer support to file claims, adding that Binance would compensate verified losses caused by technical failures.
However, Yi He clarified that losses stemming from market volatility or unrealized profits will not be covered. The exchange said it is strengthening its internal systems to handle extreme trading conditions and prevent similar breakdowns in the future.
The turmoil followed US President Donald Trump’s threat to impose 100% tariffs on Chinese imports and new export restrictions on software, triggering panic across financial markets.
According to CoinGlass, more than 1.6 million traders were liquidated in 24 hours, with $7 billion wiped out in a single hour.
Bitcoin, which earlier in the week hit a record $125,000, plunged 16% to briefly dip below $105,000 before rebounding to around $112,000 on Saturday.
While centralized exchanges like Binance and OKX struggled under pressure, DeFi protocols held firm. Uniswap, the leading decentralized exchange, saw a record $10 billion in daily volume, while lending protocol Aave processed $180 million in collateral liquidations in under an hour without incident.
“DeFi worked flawlessly,” said Euler co-founder Michael Bentley. “No circuit breakers. No intervention. Just free markets and code.”
Trump’s Approval Hits New Lows amid Government Shutdown
US President Donald Trump’s approval rating has fallen sharply, with just 40% of Americans approving and 58% disapproving, according to a new Reuters/Ipsos poll.
The drop follows growing criticism of his decision to militarize law enforcement. A separate HarrisX survey showed a slightly higher 46% approval, underscoring the deep partisan divide across the country.
The decline comes amid an ongoing government shutdown triggered by Congress’s failure to pass spending bills by the October 1 deadline.
Trump blamed Democrats, saying he would target their programs in future budget cuts. Meanwhile, on the Polymarket prediction platform, 86% of traders expect the shutdown to continue past October 15, reflecting waning confidence in Washington’s ability to compromise.
Trump’s pro-crypto stance, a central theme of his 2024 campaign, is also drawing scrutiny.
Senator Elizabeth Warren has warned that Trump’s crypto involvement could pose ethical risks if he profits from related ventures while in office.
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