Binance Adds $400 Million to Support Users After Crypto Crash
Binance announced a $400 million recovery plan to help users and institutions affected by the crypto crash on October 10, 2025. The exchange will add $300 million in stablecoins as compensation for customers forced into liquidations during the selloff.
Additionally, Binance will offer $100 million in low-interest loans to institutions hit hard by the market downturn. The plan is called the “Together Initiative.”
System Glitches Worsened Losses for Traders
During the crash, Binance’s platform experienced technical problems. Prices of major cryptocurrencies dropped below those on other exchanges. Many traders could not access their accounts or close positions due to system slowdowns.
These issues caused heavy losses for thousands of users. Binance acknowledged the errors and said affected users may receive between $4,000 and $6,000 in USDC, depending on eligibility.
Binance stated, “As the industry leader, we expect some level of scrutiny, fair or unfair. However, users are always our first priority. Without our users’ support, there would be no Binance.”
Trump’s Tariff Announcement Triggers $19 Billion Crypto Crash
The crash followed U.S. President Donald Trump’s announcement of 100% tariffs on Chinese imports. This news caused panic in global markets, leading to stock and oil price drops.
Investors moved to gold and U.S. Treasuries. Over $19 billion in leveraged crypto positions were liquidated within hours. About 1.6 million traders lost funds, marking one of the largest single-day crashes in crypto history.
Bitcoin fell more than 12%, dropping from $126,000 to nearly $102,000 before recovering. Analysts said the crash was driven by overleveraged bets and an overly optimistic market.
Binance Co-Founder Yi He apologized for the platform issues, citing “significant market fluctuations and a substantial influx of users.” Binance has since updated its pricing model and fixed display errors to prevent similar problems.
