Binance launches US$400 million relief program for investors affected by the market crash

Global crypto exchange Binance is implementing a US$400 million (approximately KRW 540 billion) relief program to support traders who suffered losses in the market crash that occurred on the 10th (local time). However, Binance maintained that it does not acknowledge legal liability for user losses.

According to Cointelegraph on the 14th (local time), the program consists of US$300 million worth of token vouchers and a US$100 million low-interest loan fund. Token vouchers, in amounts ranging from US$4 to US$6,000, will be given to users who were forcibly liquidated. Eligible users are those who lost at least US$50 in futures or margin positions between 00:00 on October 10 and 23:59 on October 11 (UTC), and whose losses accounted for at least 30 percent of their total net assets. Distribution is expected to be completed within 96 hours.

Binance said of the measure, "this does not constitute an acknowledgment of responsibility for user losses, and is intended as support to restore industry trust." It also added that it would separately establish a US$100 million 'low-interest loan fund' to ease liquidity pressures on ecosystem participants and institutional investors.

This relief measure follows Binance Smart Chain (BNB Chain)'s earlier announcement that it would compensate users who suffered losses trading meme coins through a US$45 million 'reload airdrop'.

The crash was triggered when U.S. President Donald Trump warned he would impose a 100 percent tariff on imports from China. More than US$19 billion of leveraged positions were liquidated in a single day, creating the largest liquidation event in crypto market history. Some traders claimed they were unable to liquidate positions due to a Binance system error at the time, and data errors were reported showing some altcoin prices as "0".

Binance explained that "the core futures system operated normally," but critics say internal oracle data errors led to the mass liquidations.

Binance and BNB Chain have announced a total of US$728 million in support measures following the crash. These include the immediate US$283 million compensation paid right after the crash, BNB Chain's US$45 million airdrop, and the new US$400 million fund. User reactions have been mixed. Some called it "a meaningful step to restore trust," while others complained that "US$4~6,000 vouchers are hard to see as meaningful compensation for users who lost thousands of dollars."