Binance Rolls Out $400M Program For Traders Hit By Friday’s Downturn

Authored by Nate Kostar via CoinTelegraph.com,

Binance is launching a $400 million relief program for traders hurt by losses across its ecosystem during Friday’s crypto sell-off, despite saying it does not accept liability for user losses.

According to a Tuesday post by the exchange, the initiative will distribute $300 million worth of token vouchers, ranging in value from $4 to $6,000, to eligible users.

To qualify, traders must have incurred forced liquidations on futures or margin positions between Friday 00:00 UTC and Saturday 23:59 UTC. Users must have lost at least $50 in crypto, and those losses must account for at least 30% of their total net assets, based on a snapshot taken on Thursday at 23:59 UTC. The distribution is expected to be completed within 96 hours. 

Source: cz_binance

The plan will also establish a $100 million “low-interest loan fund” for ecosystem and institutional users impacted by the market turbulence, seeking to “alleviate liquidity pressures.”

Binance clarified that the exchange does not “accept liability for users’ losses,” saying the move is designed to “rebuild industry confidence.”

Source: Binance.com

The move comes after BNB Chain announced on Monday that it launched a $45 million “reload airdrop” to compensate users who lost money trading memecoins during Friday’s crash.

Binance reacts to crypto crash

Crypto markets slumped on Friday after US President Donald Trump threatened 100% tariffs on Chinese imports, with over $19 billion in leveraged positions liquidated in 24 hours — the largest single liquidation event in crypto history.

In the aftermath, Binance has been criticized on several fronts. 

Some traders reported technical glitches that prevented them from closing positions during the sell-off, while others pointed to discrepancies in stablecoin pricing.

Several altcoins, including Enjin, Cosmos, and IoTeX, temporarily showed prices of $0 on the exchange due to issues with data from oracles.

On Sunday, Binance published a statement addressing the concerns, saying that its core futures systems continued operating normally throughout the sell-off.

Source: Binance.com

Since Friday’s crash, Binance and BNB Chain have announced a combined $728 million in recovery measures, including $45 million in airdrops, $283 million in immediate post-crash compensation, and today’s newly launched $400 million industry fund.

Some users are not impressed 

Binance’s Tuesday announcement has received mixed reactions on X. While some users, like SeedliCapital, praised the exchange for rebuilding “confidence” by taking action, others were less charitable.

Source: SeedliCapital

In contrast, user Curb.sol wrote that Binance’s “mispriced internal price oracles are directly at fault for the $400 billion in liquidations and corresponding market crash.” Adding, “everyone needs to get their funds off Binance immediately.

Source: CryptoCurb

Others said the reimbursements were welcome but fell short of covering the weekend’s losses. “While better than nothing, a ‘voucher’ for $4 to $6k  on users who got wiped for everything is kinda a joke,” LeveragedDegen wrote.

Source: LeveragedDegen_