Binance compensates 'depegging' victims with $283 million

The world's largest crypto exchange Binance said it paid a total of $283 million to users who suffered depegging losses from the market crash that occurred on the 10th. Binance explained that this phenomenon stemmed from extreme market volatility rather than an exchange system issue.

According to The Block on the 13th (local time), Binance said in a statement, "Compensation has been made for the broken pegs of Ena (ENA)'s stablecoin 'USDe', Solana liquid staking token 'BNSOL', and Ethereum-based liquid staking token 'WBETH'."

Compensation was paid to users who held those assets as collateral in futures, margin, and lending trades, and to users who incurred losses during internal transfers and product redemptions. Binance emphasized that "the market crash occurred before the depegging, and the crash period was between 21:20 and 21:21 (UTC) on the 10th."

However, Ena co-founder Guy Young rebutted, saying, "USDe did not show abnormal prices on other major exchanges," and, "It is inaccurate to view a single exchange's liquidity issue as a full depegging."

Binance announced measures to prevent a recurrence, such as reflecting asset redemption prices in index calculations and applying a 'soft price floor' to USDe's reference price. It also explained that some tokens temporarily plunged as a result of long-standing unfilled limit orders, dating back to 2019, being executed all at once.