Binance has launched a $400 million relief initiative for traders suffering from losses during the recent market downturn, while asserting that it does not acknowledge responsibility for user losses.
In a post published on Tuesday, the exchange outlined plans to distribute $300 million in token vouchers, with individual amounts ranging from $4 to $6,000, to eligible users.
To qualify, traders must have faced forced liquidations on futures or margin positions between October 10, 2025, 00:00 UTC and October 11, 2025, 23:59 UTC. A minimum loss of $50 in cryptocurrency is required, with these losses making up at least 30% of their total net assets, calculated using data from a snapshot taken on October 9, 2025, at 23:59 UTC. The distribution of funds is anticipated to be finalized within 96 hours.
Moreover, a $100 million low-interest loan fund will be established for ecosystem and institutional users affected by the market fluctuations to alleviate liquidity concerns.
Binance emphasized that the initiative should not be interpreted as acceptance of responsibility for users’ losses but as a measure to enhance industry confidence.
This announcement follows an earlier statement from BNB Chain, which revealed a $45 million ‘reload airdrop’ aimed at compensating users impacted by trading memecoins during the market decline.
Binance’s Response to Market Turbulence
The cryptocurrency markets experienced a significant setback on Friday after US President Donald Trump threatened to implement 100% tariffs on Chinese imports, leading to the liquidation of over $19 billion in leveraged positions within 24 hours, marking the largest single liquidation event in cryptocurrency’s history.
As a result, Binance has faced criticism for various issues. Some traders reported technical errors preventing them from closing positions, while discrepancies in stablecoin pricing were also noted during this downward trend.
Several altcoins such as Enjin (ENJ), Cosmos (ATOM), and IoTeX (IOTX) reported prices of $0 on the exchange due to data issues from oracles.
On Sunday, Binance addressed these concerns, confirming that its fundamental futures systems operated normally during the downturn.
Since the crash, Binance and BNB Chain have collectively proposed $728 million in recovery efforts, including the $45 million in airdrops and $283 million in immediate post-crash compensations, along with the newly introduced $400 million fund.
User Reactions
The latest announcement by Binance has garnered a mixed reception on social media platforms. While some users praised the initiative as a means to restore confidence, others expressed their dissatisfaction. For instance, user Curb.sol blamed Binance’s inaccurately priced internal oracles for the extensive liquidations and advised others to withdraw their funds immediately.
While the promised compensation is viewed as a positive step, some users feel that it does not adequately cover the heavy losses incurred over the weekend.
