Binance Covers $283 Million Loss After Wrapped Token Crash
Binance, a leading global cryptocurrency exchange, has taken decisive action to compensate users impacted by a recent market downturn. The exchange has reimbursed users a staggering $283 million after synthetic tokens, including USDe, BNSOL, and WBETH, experienced a depegging event and display glitches, impacting their value within Binance’s ecosystem. This move aims to restore stability and confidence in the platform, particularly during a period of significant market volatility. This also shows their commitment to their growing user base in Africa, where cryptocurrencies are becoming increasingly popular.
The Incident and Binance’s Response
The disruption occurred on Friday, October 10, 2025, coinciding with a significant market sell-off that significantly impacted the crypto landscape. During this time, several Binance “Earn” assets, including the aforementioned synthetic tokens, temporarily deviated from their expected values. Simultaneously, some users reported seeing token prices displayed as “0” on their screens. Binance attributed a large part of the issues to a display glitch and underlying structural challenges in managing collateral references. The affected tokens were utilized as collateral within various Binance products, including margin, futures, and Earn programs. Binance’s decision to fully reimburse affected users highlights its commitment to customer protection and proactive risk management. This quick reaction helps to secure their market share, especially in emerging crypto markets like those in Africa.
Binance’s compensation for the $283 million loss demonstrates its commitment to maintaining user trust and operational resilience in the face of market uncertainties.
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