Users affected by the liquidation of guarantees, Earn products, and transfer delays received a full refund of their money within 24 hours.
Binance announced that it compensated affected users with nearly $283 million following the recent market collapse on October 10.
The company also explained that the situation was due to a brief technical glitch on the same day that led to temporary disruptions and the delinking of some cryptocurrencies.
What actually happened during the incident?
On October 12, the exchange issued a statement explaining the severe price fluctuations that occurred after global economic events triggered heavy sell-offs in the cryptocurrency market.
The collapse led to a panic sell-off by traders across multiple platforms, resulting in over $7 billion being liquidated in the first hour. As a result, the values of Bitcoin, Ethereum, and other major digital assets dropped, while synthetic cryptocurrencies like USDE and BNSOL lost their peg.
However, Binance stated that it compensated affected users within 24 hours, then later decided that its platform only played a minor role in the overall decline.
The company stated: "The volume of forced liquidations processed by the Binance platform represented a relatively low percentage of the total trading volume, indicating that this volatility was primarily driven by broader market conditions."
Customers who lost their money were fully compensated through the liquidation of guarantees, while those affected by delays in internal transfers or refunds of Earn products will also receive refunds.
Overall, the giant cryptocurrency company paid $283 million to users affected by the delinking of Earn products associated with USDE, BNSOL, and WBETH. The company also clarified that the collapse occurred prior to the delinking, not because of it.