Binance Risk Report: The 2025 Crash That Liquidated 1.6M Traders
@rabtyy
October 10, 2025 — Binance’s “Black Friday” crash
A $19 billion wave of leveraged liquidations — the largest single-day liquidation event in crypto history — wiped out 1.6 million traders in roughly 24 hours.
On Binance specifically, the stablecoin USDe collapsed to $0.65 while it held near $0.90–$0.95 on every other venue. Because Binance prices collateral with its own internal market data instead of external oracles, that isolated depeg force-liquidated positions that should never have been touched. Traders reported frozen accounts, delayed stop-losses and balances shown as “0”, unable to close or hedge as they were wiped out.
Binance later paid $283 million in depeg compensation, pledged a further $300 million to liquidated users and $100 million in loans to affected institutions — an admission of the scale of the damage.
Not a first offence
In 2023, Binance and its founder pleaded guilty to U.S. federal charges and paid a $4.3 billion settlement for anti-money-laundering and sanctions violations — the largest such penalty in crypto history.
An exchange that liquidates its own users on a price only it saw, then pays them back after the fact, is not where we send our readers.
Sources — verify for yourself
- U.S. DOJ — Binance & CEO plead guilty, $4B resolution
- Forbes — Locked Out And Liquidated: Traders Blame Binance For $19B Crash
- Bloomberg — Binance increases compensation for liquidated customers
- Lexology — Binance’s role in the 10 Oct 2025 crash
- 99bitcoins — Binance pays $283M after depeg triggers liquidations
- CoinGecko — 10/10 mass liquidation (1.6M traders) explained