Binance issues statement on recent market volatility – FX News Group

            <span class="post-category"><a href="https://fxnewsgroup.com/category/forex-news/cryptocurrency/binance/" rel="tag" class="term-binance">Binance News</a>/ <a href="https://fxnewsgroup.com/category/forex-news/cryptocurrency/" rel="tag" class="term-cryptocurrency">Cryptocurrency News</a></span>         <br>                                                            <span class="author-avatar"><img alt='' data-src='https://secure.gravatar.com/avatar/fad9763eadd579d9da24511d8252d30e40c18ffe8ba588466cc48499575cf806?s=30&d=mm&r=g' data-srcset='https://secure.gravatar.com/avatar/fad9763eadd579d9da24511d8252d30e40c18ffe8ba588466cc48499575cf806?s=60&d=mm&r=g 2x' itemprop='image' class='avatar avatar-30 photo lazyload' height='30' width='30' decoding='async' src='data:image/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==' style='--smush-placeholder-width: 30px; --smush-placeholder-aspect-ratio: 30/30;' /></span>                         <span class="author-name"><span class="author vcard"><a class="url fn n" href="https://fxnewsgroup.com/author/maria/" rel="author">Maria Nikolova</a></span></span>                                                                    <span class="post-comment">         <a href="https://fxnewsgroup.com/forex-news/cryptocurrency/binance-issues-statement-on-recent-market-volatility/#respond">0 Comments</a>        </span>                                                               <time datetime="2025-10-13" class="post-date entry-date updated">October 13, 2025</time>                           <br>Cryptocurrency exchange Binance has issued a statement regarding the market volatility affecting the crypto market on October 10, 2025.<br>The platform claims that during the event its core engines remained operational and that the forced liquidation volume processed by Binance platform accounted for a relatively low proportion to the total trading volume.<br>However, it is providing compensation to clients affected by the depegging issues within 24 hours after the event.<br>The full statement by Binance can be read below:<br>Fellow Binancians,<br>Between 2025-10-10 20:50 and 22:00 (UTC), global macroeconomic events triggered extreme market volatility. Both institutional and retail users engaged in concentrated sell-offs, causing the cryptocurrency market to experience a collective sharp decline during this period, resulting in highly volatile conditions.<br><strong>I. Market Review and Platform Performance</strong><br>We are aware of speculation in the market regarding the causes of this event, with some focusing on the role of the Binance platform. Binance has conducted a comprehensive review and can now confirm that during the event, the core futures and spot matching engines and API trading remained operational. According to data, the forced liquidation volume processed by Binance platform accounted for a relatively low proportion to the total trading volume, indicating that this volatility was mainly driven by overall market conditions.<br>At the same time, the review confirmed that following 2025-10-10 21:18 (UTC), some platform modules briefly experienced technical glitches, and certain assets had de-pegging issues due to sharp market fluctuations. Binance remains committed to addressing these issues responsibly and transparently, as transparency has always been one of our core values. Accordingly, we have completed compensation for users affected by the depegging issues within 24 hours after the event.<br><strong>II. Compensation Plan</strong><br>In line with our user-focused principle, Binance has taken the following measures:<br>1. Compensation for Earn Product Depegs<br>We are aware of claims that the de-pegging of certain Binance Earn products relating to USDE, BNSOL, and WBETH, caused the market crash, and therefore we wish to clarify that it was not the case. The extreme market downturn occurred before the de-pegging. Records show that during the market sell-off, prices fell to their lowest point between 2025-10-10 21:20 and 21:21 (UTC), while the severe de-pegging occurred after 21:36 (UTC) on the same day.<br>Where the de-pegging impacted some users who had their positions liquidated due to holding these assets as collateral, Binance has taken responsibility and has fully covered their losses. Compensation has been distributed in two batches, totaling approximately 283 million USD. Users can refer to our announcement on this matter for more information.<br>2. Compensation for Internal Transfers and Earn Product Redemption Delays<br>During the extreme market volatility, brief lags in the internal transfers of funds and Earn product redemptions impacted timely margin top-ups. Binance will compensate impacted users with verified losses.<br>3. Ongoing Review and Transparency<br>Binance is still reviewing and processing user cases. We will continue to maintain full transparency and continuously update the community on the compensation progress via official channels to ensure that every affected user’s case is properly addressed.<br><strong>III. Explanation on Extreme Price Movements in Certain Spot Trading Pairs</strong><br>We are also aware the community has been discussing the extremely low prices observed in certain spot trading pairs. We understand the community and users’ concerns, and Binance’s team immediately initiated technical investigations and data analysis. According to current findings, the main reasons are as follows:<br>1. Triggering of Historical Limit Orders Due to One-sided Liquidity<br>Historical limit orders (some dating back years, as far as 2019, e.g., IOTX, ATOM) had remained open on the platform. During extreme market sell-off and the lack of buying orders, sell orders continue to execute against these long-standing limit orders, pushing token prices to sharply drop momentarily.<br>Please note: Binance Futures use a mark price mechanism that automatically discounts or excludes abnormal price components to prevent unfair liquidations due to such abnormal market movements. Mark price is also available in the K-line chart for verification.<br>2. “Zero Price” Display Issue<br>Certain trading pairs (such as IOTX/USDT) recently reduced the number of decimal places allowed for minimum price movement, causing the displayed prices in the user interface to be zero, which is a display issue and not due to actual zero price.<br>3. Subsequent Optimization and Improvements<br>Binance will optimize UI display and apply UI display corrections for related abnormal prices (no separate announcements will be released) to ensure a better trading experience in the future. The API interface will remain unaffected.<br>We sincerely thank all users for their understanding and support during this incident.Binance will continue to listen to user feedback, learn from experience, and address issues and users’ concerns openly and transparently. We remain committed to continuously improving system performance and risk controls, enhancing platform security and stability under extreme market conditions, and providing a safer, more transparent, and higher-quality trading experience for users worldwide.<br>Finally, we would like to remind our community that the cryptocurrency market is highly volatile and carries inherent risks. Please invest and trade within your means, manage your positions responsibly, and exercise proper risk control. If we identify suspected market surveillance transactions after our thorough investigations, we will report to the regulator as required.<br>Thank you for your support!<br>Binance Team<br>           <img alt='' data-src='https://secure.gravatar.com/avatar/fad9763eadd579d9da24511d8252d30e40c18ffe8ba588466cc48499575cf806?s=96&d=mm&r=g' data-srcset='https://secure.gravatar.com/avatar/fad9763eadd579d9da24511d8252d30e40c18ffe8ba588466cc48499575cf806?s=192&d=mm&r=g 2x' itemprop='image' class='avatar avatar-96 photo lazyload' height='96' width='96' decoding='async' src='data:image/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==' style='--smush-placeholder-width: 96px; --smush-placeholder-aspect-ratio: 96/96;' />        <br>                                <span class="post-category"><a href="https://fxnewsgroup.com/category/forex-news/cryptocurrency/binance/">Binance News</a> / </span>                             <br>                                <span class="post-category"><a href="https://fxnewsgroup.com/category/forex-news/cryptocurrency/">Cryptocurrency News</a> / </span>                          <br>                                <span class="post-category"><a href="https://fxnewsgroup.com/category/forex-news/cryptocurrency/binance/">Binance News</a> / </span>                             <br><span id="email-notes">Your email address will not be published.</span> <span class="required-field-message">Required fields are marked <span class="required">*</span></span><br><label for="comment">Comment <span class="required">*</span></label> <textarea id="comment" name="comment" cols="45" rows="8" maxlength="65525" required></textarea><br><label for="author">Name <span class="required">*</span></label> <input id="author" name="author" type="text" value="" size="30" maxlength="245" autocomplete="name" required /><br><label for="email">Email <span class="required">*</span></label> <input id="email" name="email" type="email" value="" size="30" maxlength="100" aria-describedby="email-notes" autocomplete="email" required /><br><label for="url">Website</label> <input id="url" name="url" type="url" value="" size="30" maxlength="200" autocomplete="url" /><br><input name="submit" type="submit" id="submit" class="submit" value="Post Comment" /> <input type='hidden' name='comment_post_ID' value='36405' id='comment_post_ID' /> <input type='hidden' name='comment_parent' id='comment_parent' value='0' /> <br><input type="hidden" id="akismet_comment_nonce" name="akismet_comment_nonce" value="dcff6704d8" /><br><label>&#916;<textarea name="ak_hp_textarea" cols="45" rows="8" maxlength="100"></textarea></label><input type="hidden" id="ak_js_1" name="ak_js" value="25"/><script>document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() );</script><br>LEADING BROKERS<br>LATEST NEWS<br>FNG NEWSLETTER<br><span style="color: #333333;">With FNG's Newsletter you'll get all the latest breaking FX Industry news stories - in a concise daily email, directly to your Inbox.</span><br>                              <input placeholder="Email">                             <br>                <a href="#header">Back to Top</a>           <br>Get FNG's daily newsletter to receive notice of all articles like this one, in a concise daily email.<br>Subscribe now!<br>                                 <input placeholder="Email">                             <br><br><a href="https://news.google.com/rss/articles/CBMipgFBVV95cUxQd29lS2FEaEFLWURUUXNDT1JZT09fMnJEdjJJLThZN1ZmR0JqOXdRMmNMeDdxMk9HajlQNWJxTm1SZG9YQTR4NTlKQVZGYWxlU3lPWkV6OExRTkZCSnd0ZXB2bWgzMWVxOHlOQ1Yxb1U3cnJiQ0xhNTlXd2pYQ3oxVjRRay1WUVBoNlJsSEtQQTlXSmwyZnE4MHM5UkhEVDdVNXhjZHNB?oc=5">source</a>