Binance has promised to pay back traders who were harmed by system problems during the market crash on Friday. This crash wiped out over $19 billion in leveraged investments, making it one of the biggest selling-off events in the history of cryptocurrency.
Main Points:
- Binance will pay back verified users for losses that happened because of technical problems during the $19 billion market crash.
- The exchange had delays in transactions because many people were trading a lot after Trump’s talks about tariffs caused panic selling.
- DeFi platforms like Uniswap and Aave managed a lot of activity without any problems, showing they are more reliable than centralized exchanges.
The exchange admitted that the increase in trading during the market drop caused transaction mistakes and delays in orders. This meant some users couldn’t close their positions in time and ended up losing their investments.
“Because there were big changes in the market and a lot of new users, some people had problems with their transactions,” said Yi He, co-founder and customer service chief of Binance, in a statement on Saturday.
Binance Will Pay Users for System Mistakes
She asked users who were affected to get in touch with customer support to report their issues, explaining that Binance would pay back confirmed losses caused by technical problems.
Yi He explained that they won’t cover losses from market ups and downs or profits that haven’t been made yet. The exchange said it is improving its systems to deal with tough trading situations and to stop problems like this from happening again.
The chaos started after US President Donald Trump said he might put a 100% tax on goods coming from China and place new rules on software exports, causing worry in the financial markets.
CoinGlass says that over 1. 6 million traders lost their money in just 24 hours, with $7 billion lost in just one hour.
Bitcoin reached a high of $125,000 earlier this week but then dropped by 16% and went below $105,000. However, it bounced back to about $112,000 on Saturday.
While centralized exchanges like Binance and OKX faced challenges, DeFi protocols stayed strong. Uniswap, the top decentralized exchange, had a record $10 billion in trading volume in one day. Meanwhile, the lending platform Aave handled $180 million in asset liquidations in less than an hour without any problems.
“DeFi worked perfectly,” said Michael Bentley, a co-founder of Euler. “No circuit breakers. ” Can be simplified to “There are no circuit breakers. ” No action taken. “Only open markets and computer programs. ”
Trump’s approval ratings drop to new lows during the government shutdown.
A new poll by Reuters/Ipsos shows that US President Donald Trump’s approval rating has dropped a lot. Only 40% of Americans approve of him, while 58% do not approve.
The decline comes after more people are criticizing his choice to give the police military equipment. A different HarrisX survey found that 46% of people approved, showing that the country is very divided along party lines.
The drop is happening during a government shutdown because Congress didn’t pass budget bills by the October 1 deadline.
Trump said it was the Democrats’ fault and that he would focus on cutting their programs in future budgets. At the same time, on the Polymarket prediction platform, 86% of traders believe the shutdown will last beyond October 15. This shows that people have less confidence in Washington’s ability to work together and find a solution.
Trump’s strong support for cryptocurrencies, an important part of his 2024 campaign, is being closely examined.
Senator Elizabeth Warren has said that Trump being involved in cryptocurrency could be a problem if he makes money from it while he is in office.
