Crypto exchange Binance reimbursed users after October 10 depegging of Earn assets, attributing sharp price drops to a display error. The compensation totaled $283 million and was completed within 24 hours, covering affected users across Margin, Futures, and Loan products. Binance stated it would continue reviewing user cases and report suspicious trading activity to regulators.

The “Black Friday crash” on October 10 caused sell-offs across the crypto market, affecting assets like USDe, BNSOL, and wBETH on Binance. Analysts noted Binance’s quarter-billion payout as unusual, suggesting it reflected reputational risk. The incident raised concerns about platform-specific liquidity fragmentation and reputation risk management.

The $283 million payout, while substantial, is relatively small compared to Binance’s overall earnings, according to analysts. The move is seen as a mix of goodwill and strategic optics to reinforce user trust and brand image amidst the growing CEX vs. DEX narrative. Binance has experienced multiple issues recently, prompting concerns about reputation management.

Read more at Yahoo Finance: Binance Reimburses $283M After Market Crash and Asset Depegging Issues