Binance is initiating a $400 million relief program aimed at traders who faced losses within its ecosystem during Friday’s crypto downturn, even as it maintains it does not accept responsibility for user losses.
In a Tuesday announcement, the exchange stated that $300 million in token vouchers, valued between $4 and $6,000, will be allocated to qualifying users.
To be eligible, traders must have experienced forced liquidations on futures or margin positions from Oct. 10, 2025, 00:00 UTC to Oct. 11, 2025, 23:59 UTC. Users need to have lost a minimum of $50 in cryptocurrency, with those losses constituting at least 30% of their overall net assets, based on a snapshot taken on Oct. 9, 2025, at 23:59 UTC. The distribution is anticipated to be finalized within 96 hours.
The program will also create a $100 million “low-interest loan fund” for ecosystem and institutional users affected by market volatility, aimed at “easing liquidity pressures.”
Binance emphasized that it does not “accept liability for users’ losses,” indicating that this initiative is intended to “restore industry confidence.”
This initiative follows BNB Chain’s announcement on Monday regarding a $45 million “reload airdrop” to compensate users impacted by trading losses on memecoins during Friday’s market crash.
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Binance responds to crypto decline
Cryptocurrency markets plummeted on Friday after US President Donald Trump threatened 100% tariffs on Chinese imports, resulting in over $19 billion in leveraged liquidations within 24 hours — marking the largest single liquidation event in crypto history.
Following this, Binance faced criticism from multiple angles.
Some traders reported technical issues that hindered them from closing positions during the downturn, while others highlighted inconsistencies in stablecoin valuations.
A number of altcoins, such as Enjin (ENJ), Cosmos (ATOM), and IoTeX (IOTX), temporarily displayed prices of $0 on the exchange due to problems with oracle data.
On Sunday, Binance released a statement addressing these issues, asserting that its core futures systems operated normally throughout the sell-off.
Since the crash on Friday, Binance and BNB Chain have announced a total of $728 million in recovery actions, which include $45 million in airdrops, $283 million in immediate compensation post-crash, and the recently introduced $400 million industry fund.
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Mixed reactions from users
Binance’s Tuesday announcement has garnered mixed feedback on X. While users such as SeedliCapital commended the exchange for attempting to restore “confidence” by taking action, others expressed discontent.
In contrast, user Curb.sol claimed that Binance’s “mispriced internal price oracles are directly responsible for the $400 billion in liquidations and subsequent market crash,” urging everyone to withdraw their funds from Binance immediately.
Others indicated that while the reimbursements were appreciated, they were insufficient to compensate for the weekend’s losses. “While better than nothing, a ‘voucher’ for $4 to $6k on users who got wiped out is rather absurd,” LeveragedDegen commented.
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