The company hopes the gesture will help restore faith in the crypto industry
Binance has announced a $400 million relief initiative aimed at supporting traders affected by last week’s sharp cryptocurrency market downturn. The exchange said the move is part of broader efforts to restore confidence in the industry, though it emphasized that it is not accepting liability for user losses. The decision follows one of the largest liquidation events in crypto history, which saw more than $19 billion in leveraged positions wiped out within a single day.
Talk is cheap.
$283 million compensation on @Binance
$45 million recovery airdrop on @BNBChain and @four_meme_
Another $400 million recovery airdrop on @binanceProtect users. https://t.co/HZcff61Sv5
— CZ 🔶 BNB (@cz_binance) October 14, 2025
The plan includes $300 million worth of token vouchers, valued between $4 and $6,000 each, to be distributed among eligible traders. To qualify, users must have faced forced liquidations on margin or futures trades between Friday 00:00 (UTC) and Saturday 23:59 (UTC).
Those affected must have lost at least $50 in crypto, with the losses representing 30% or more of their total net assets at the time. Binance expects the compensation process to finish within four days of the announcement.
In addition to the vouchers, Binance will create a $100 million low-interest loan fund for institutional and ecosystem participants. This fund is designed to help stabilize liquidity and provide relief to partners impacted by recent volatility.
The company said these measures are intended to demonstrate its commitment to protecting its community and rebuilding market trust after widespread criticism.
The exchange has faced scrutiny over the weekend, with users reporting technical issues during the sell-off, including price feed errors and stablecoin discrepancies. Several altcoins briefly showed prices of zero, leading to confusion and frustration among traders. Binance responded by saying its core trading systems remained fully operational throughout the crash.
Together with recent measures from BNB Chain, the combined relief efforts from Binance now total roughly $728 million. While some in the crypto community welcomed the gesture, others said the vouchers and compensation amounts do little to offset the extensive losses suffered during the market collapse.
