Binance denies system malfunction and has compensated over $328 million

On October 11, 2025, the cryptocurrency market experienced a flash crash, with Binance stating that the event was triggered by macroeconomic shocks, liquidation of highly leveraged positions, market maker risk control tightening liquidity, and Ethereum network congestion, and was not a platform systemic failure. The core matching engine and clearing system are running normally without any downtime. On that day, global financial markets fell, causing the US stock market to evaporate by about $1.5 trillion. Open contracts for cryptocurrency derivatives remained high, and liquidity plummeted, exacerbating volatility. Binance has completed system optimization and compensated over 328 million US dollars to affected users, while setting up 300 million US dollars in aid funds and 100 million US dollars in low interest loans to support ecological operations.