CZ Praises Binance for Compensating Crypto Market Crash Victims

The October 10 crypto crash stunned millions of crypto investors, who were prepared for anything but that. Over $19 billion got liquidated, and the total crypto market cap dropped by over $500 billion.

Binance, the leading crypto exchange, also claimed that $16–19 billion in leveraged positions got wiped out during that turmoil. But it is the top crypto exchange for a reason. This centralized exchange (CEX) decided to compensate users who lost their funds.

Binance co-founder and former CEO, Changpeng Zhao (CZ), also praised the platform for standing firm. It wasn’t one of those crypto platforms that exploited their users. It demonstrated what true accountability and leadership mean.

Binance Compensated Crypto Crash Victims

A reputed influencer praised Binance for its operations following the massive market volatility. This exchange faced the crisis with full responsibility. It compensated users with more than $283 million within a day.

The influencer stated that some platforms exploited their users during those crypto crash hours, and some disappeared. Binance acted responsibly, completing compensation for users impacted by de-peg issues within 24 hours.

According to available reports, Binance has compensated platform users holding affected assets, including collateral. It also compensates for losses incurred due to delays in internal transfers or Earn product redemptions.

The leading crypto exchange stated that it will continue to review and process user cases individually. However, losses incurred due to unrealized profits and market volatility won’t be compensated.

CZ Praised Binance and BNB’s Outperformance

Changpeng Zhao looked pretty excited about Binance Coin (BNB) performance during its latest bull run. The crypto crash also affected BNB, but the altcoin bounced back and recovered pretty well.

In his recent X post, CZ praised BNB, stating, “Some people ask why is BNB so strong?”. He acknowledged that while other platforms ignore, shift blame, hide, or attack competitors, Binance ecosystem players protected users. CZ indicated that Venus, Binance, and other BNBChain players compensated affected users with their own pockets.

Zhao also stated that BNB’s price action during the crypto crash can be attributed to the strong performance of the ecosystem’s key players. Market participants also praised Binance Coin for its recovery, while several altcoins lost more than 50% of their value.

In another tweet, CZ stated: “I am not aware of any of my affiliated entities buying or selling #BNB in the past days / weeks.” He attributed BNB’s performance to its robust community and the token’s deflationary nature.

Binance Announced Compensation, But the Community Doesn’t Look Happy

Although CZ praises Binance for compensating users, the community doesn’t seem that positive. His comments are flooded with complaints regarding Binance’s performance during the crypto crash. Users expected to

Binance CEO, Richard Teng, also acknowledged issues crypto exchange users faced during volatile market hours. He apologized to all the users who were impacted, and stated, “We don’t make excuses – we listen closely, learn from what happened, and are committed to doing better.”

He also asked users to reach out to him if they are still experiencing issues. The current Binance CEO assured that the platform will handle every case with care.

Binance is going to offer monetary compensation to users who experienced losses due to technical difficulties during the crypto crash. It will take care of users who faced losses due to the depegging of WBETH, USDEe, and BNSOL.