The global cryptocurrency market experienced severe volatility yesterday (11th). The price of the stablecoin USDE on the Binance exchange plummeted to $0.65 after decoupling. The liquid staking tokens BNSOL (which tracks the price of Solana) and WBETH (which tracks the price of Ethereum) also decoupled significantly. The community questioned Binance's insufficient risk control and its failure to effectively respond to abnormal fluctuations, resulting in many users suffering losses from liquidation.
Binance announces compensation plan
In response, Binance released an official announcement this morning, launching a compensation program for users affected by the decoupling of USDE, BNSOL, and WBETH. The announcement stated that all users who used these assets as margin or loan collateral and were liquidated during the decoupling period will automatically receive compensation.
At the same time, Binance emphasized that losses caused purely by market fluctuations or unrealized profits are not within the scope of compensation.
He Yilian tweeted an apology
In response to this incident, Binance co-founder He Yi also published two consecutive posts on the X platform today, apologizing to the community and explaining the situation. She began by stating, "Due to the volatile market and the influx of users, some users have encountered issues during trading. I am deeply sorry for this." She promised to compensate for losses caused by the platform issues and emphasized that Binance "never shies away from problems," but reiterated that it would not compensate for losses caused by market fluctuations.
Due to significant market volatility and an influx of users over the past 16 hours, some users have experienced trading difficulties. We sincerely apologize for any losses incurred due to Binance's actions. Please contact customer service to register your account. We will analyze your account activity and determine compensation. This will take some time, but losses caused by market fluctuations and unrealized profits are not covered.
Binance is what makes us what we are because we never shy away from problems. We readily acknowledge any shortcomings we may have. We will serve as many users as we can without excuses or justification. We will take responsibility for our actions. The current market remains volatile, so please exercise caution and be mindful of investment risks.
Then she clarified again in her second post:
Thank you very much for your support. I would like to reiterate the principle: Binance is responsible for any problems it has. Friends who purchased decoupled assets at a low price yesterday earned their money by staying up late, and we will not recover this part; financial management users involved in the three types of decoupled and packaged assets are gradually being processed; and trading users who suffer losses or margin calls due to platform lag issues will be handled one by one.
Some friends have been very enthusiastic about sharing information about Binance's loss compensation, resulting in a large influx of inquiries. We have activated our customer service team, which is still in training, and are using translators for cross-language support, which may easily lead to further backlogs and issues. I must emphasize again: we do not compensate for individual trading losses or unrealized profits caused by price fluctuations.
Behind He Yi apology: two main reasons for community dissatisfaction
He Yi's public response and apology stemmed from two major concerns raised by the community about Binance. First, some users believed that the decoupling of USDE, BNSOL, and WBETH was related to Binance's risk control mechanisms, and that the company's failure to promptly adjust price indices or collateral led to increased liquidations, suggesting that Binance was asking for trouble.
Secondly, Binance customer service, when communicating with users, said that "the value of Altcoin is originally zero," attempting to explain the lack of compensation for losses caused by market fluctuations. However, this statement immediately ignited the anger of the community and was seen by the community as lacking empathy and even unprofessional. Some community members even questioned:
If Binance says Altcoin are worth zero, why is it still listing Alpha? Why is it personally involved in promoting meme-like coins like Binance Life and customer service Xiao He?
In this regard, He Yi also continued to emphasize that Binance has enabled intern customer service, and the customer service also uses translation tools, so there may be communication problems.
