
Binance has launched a sweeping $400 million “Together” initiative to support users and institutions hit by the recent crypto market downturn. The program includes $300 million in USDC compensation for retail traders affected by forced liquidations and a $100 million institutional loan fund designed to stabilize ecosystem partners.
The announcement follows several days of heavy volatility that wiped out billions in crypto market value, triggering forced liquidations across major exchanges. Binance said the move reflects its commitment to “rebuilding confidence and supporting users first,” even as the company faces heightened scrutiny and operational pressure.
$300 Million in USDC Compensation for Traders
Under the new compensation plan, Binance will distribute between $4 and $6,000 in USDC per eligible user, totaling $300 million. The exchange said the payouts are aimed at offsetting losses from forced liquidations in Futures and Margin trading between October 10 and October 11, 2025 (UTC).
Eligibility requires:
- A total liquidation loss of at least $50 equivalent;
- A loss ratio of 30% or more of total net assets based on a snapshot from October 9, 2025;
- Users who previously received compensation are not eligible.
Distribution will begin within 24 hours and is expected to complete within 96 hours, according to Binance. Payouts will be credited directly to users’ Spot Accounts, though the exchange cautioned that “delays may occur” due to workload and verification demands.
“The past few days have been painful for our industry,” Binance said in a statement. “While we do not accept liability for market losses, we believe it is critical to restore confidence and stand by our users during this period.”
$100 Million Institutional Support Program
In addition to retail compensation, Binance is setting aside $100 million to create a low-interest loan fund for institutional and ecosystem participants impacted by market turbulence. The fund will offer liquidity support to VIP clients, funds, and partners facing short-term capital constraints following last week’s sell-off.
Eligible institutions can apply through their Binance account managers, with approvals handled on an expedited basis. The company said it will maintain strict confidentiality during the process.
The initiative is designed to help firms “restart trading, alleviate liquidity pressures, and maintain stable operations,” according to Binance’s internal statement.
Rebuilding Trust Across the Industry
Binance acknowledged that the recent volatility has shaken both asset prices and user confidence. The company emphasized that the “Together” initiative represents a long-term investment in the health of the crypto ecosystem rather than a legal obligation.
The exchange also reminded traders to manage positions prudently amid continued volatility and to approach leverage with caution. “As the industry leader, we face scrutiny – some fair, some not,” Binance said. “But users will always be our first priority. Without their trust, there would be no Binance.”
With $400 million committed through the new initiative, Binance is sending a message of resilience as the crypto market works to recover from one of the most volatile periods of 2025.
The company said it remains confident in the industry’s long-term growth and reiterated its belief that the downturn is temporary. “As in previous challenging periods,” the statement concluded, “we will get through this together — as one industry.”