Binance Pays $283 Million to Users Liquidated in October 10 Crash After USDe Depeg

Published October 13, 2026, 10:45 PM PKT. Based on Binance's official October 12 statement as covered by Decrypt and CoinTelegraph, Ethena founder Guy Young's public response, and CoinTelegraph's October 13 reporting on CZ's denial.

Binance has paid out roughly $283 million to users who were forcibly liquidated during the October 10 crypto crash, closing out the compensation round that followed the temporary depegging of USDe, BNSOL and WBETH on its platform. The exchange said on October 12 that it had reimbursed affected users within 24 hours of its announcement, settling the claims in two batches and pricing them against asset prices at 00:00 UTC on October 11.

The 40-minute window: 21:36 to 22:16 UTC

The payout covers a precise slice of the chaos. Binance said the compensation went to users whose positions were liquidated between 21:36 and 22:16 UTC on October 10 while holding the affected assets as collateral across its Margin, Futures and Loan products. Separate automatic credits for delays tied to internal transfers and Earn redemptions during the crash were also issued, with Binance saying those credits would land within 72 hours. The announcement closes a chapter that began as a public feud: it follows last week's clash between OKX founder Star Xu and Binance's CZ and Yi He over promised compensation for October 10 losses, which MABOnChain covered on October 12.

The $19 billion liquidation, the worst on record

The October 10 crash itself was historic. The selloff was triggered by President Trump's threat of an additional 100% tariff on Chinese imports, and it wiped out roughly $19 billion in leveraged positions in 24 hours, the worst single-day liquidation event crypto has recorded. Data provider CoinShares put the carnage at roughly nine times the February 2025 wipeout. Bitcoin fell more than 14% from its Friday high to about $104,782, and Ether fell more than 12%, according to the coverage.

Guy Young's argument: the peg never broke, the oracle did

The fiercest fight is over what actually depegged. Ethena founder Guy Young argued publicly that USDe's "depeg" was not a protocol failure at all. On Curve and Uniswap, he said, USDe traded at about $0.99, deviating by 30 basis points or less, while roughly $2 billion of USDe was redeemed across Curve, Fluid and Uniswap in 24 hours with minimal deviation. Minting and redemption worked exactly as designed, in his account.

The $0.65 print that hit Binance users, Young said, existed only inside Binance. The exchange's price oracle was pulling from its own thin spot order book instead of external liquidity feeds, and deposit and withdrawal frictions kept market makers from arbitraging the gap shut. His claim goes further: no one would have been liquidated on any money market whose oracles referenced the deepest global USDe liquidity.

Binance's defense: systems stayed up, the market did the damage

Binance's official line is that its trading systems remained operational through the crash, and the dislocation was described in some reporting as a "display error." The exchange said forced liquidation volume processed on Binance accounted for a relatively low proportion of total trading volume and was mainly driven by overall market conditions. Its position is that the depeg followed the crash rather than causing it.

The exchange pledged fixes: improvements to its price index, including redemption prices and soft floors, and a migration of the affected oracle data to external feeds by October 14. It also said it will continue reviewing individual cases and report suspicious trading activity to regulators.

CZ rejects blame as CoinGlass questions the numbers

CZ has publicly rejected claims that Binance fueled the historic liquidation cascade, according to CoinTelegraph's October 13 reporting. Separately, CoinGlass accused Binance of underreporting liquidation figures in the Trump-induced crash, a charge the exchange has not accepted. The two claims frame the political dimension of the payout: $283 million returned within 24 hours of the announcement, while the exchange fights publicly over who caused the damage in the first place.

This article is news reporting and is not investment advice.

Sources

• Binance, official October 12 statement on the $283M reimbursement (as covered by Decrypt), primary source for the payout figure, the 24-hour reimbursement timeline, the 21:36-22:16 UTC October 10 window, the two settlement batches, the 00:00 UTC October 11 pricing reference, the 72-hour automatic credits, and the index and oracle fixes promised by October 14
• CoinTelegraph, CZ denies Binance role in October crypto liquidation, defends USDe handling (Oct. 13, 2026), secondary source for CZ's denial, Guy Young's oracle argument and USDe redemption figures, and the "display error" framing
• Decrypt, Binance reimburses $283M after market crash and asset depegging issues (Oct. 12, 2026), secondary source for the reimbursement details and the affected assets
• Startup Fortune, Binance pays $283 million after its own price feed broke a stablecoin that never actually broke (Oct. 13, 2026), secondary source for the $19B liquidation scale, the tariff trigger and the market context
• ainvest, Binance addresses oracle issue in USDe depeg, pays $283M compensation (Oct. 13, 2026), secondary source for the oracle migration timeline and the pledged fixes