Amid the recent turmoil in the crypto market, Binance, the world’s largest exchange by volume, admitted on October 10 that it had faced serious operational issues affecting thousands of users.
In the midst of a day marked by record liquidations and unprecedented volatility, A technical error has occurred on the platform, preventing the correct execution of your order.we encountered issues that resulted in withdrawal delays, discrepancies in the balances shown in our accounts, and made our mobile app and main website inaccessible at critical times.
This event coincided with the temporary collapse of several stablecoins, including USDe, which fell by as much as 65 cents against the dollar, adding to the market turmoil.
Binance CEO Richard Tengpublicly apologized to affected users. He assured that the technical team is working to prevent a similar incident from happening again.
Teng said on his official X account, “We deeply regret any inconvenience caused. We will make no excuses. We will listen to the community, learn from what happened, and improve.”
Binance internal system failure
The CEO explained that the main cause was the extreme trading volume during the crash. This can overload the exchange’s internal systems.
He also reported that the platform will consider the possibility of compensation for those who suffered losses directly due to technical failures of the platform, and clarified that losses caused by fluctuations in the market itself will not be compensated.
Binance co-founder Yi He said:confirmed that a large flow of concurrent transactions was the cause of the problem. We also encouraged affected users to contact technical support using their “Case ID” so that we can review each case individually.
The official stressed that the problem has already been fixed and the system’s stability mechanisms will be strengthened. “We understand traders’ frustrations and are committed to reviewing each situation with transparency and accountability,” he said.
This event occurred in a highly volatile ecosystem, with over $20 billion of long positions being liquidated in 24 hours.
They demand a serious investigation into CEX
Amid the market collapse and widespread online complaints, Crypto.com CEO Chris Marszalek called on financial authorities to investigate major centralized exchanges.
Marszalek, via X, questioned whether some platforms slow down operations or change prices when processing billions of liquidated positions. In this sense, he specifically mentioned Binance, Bybit and Hyperliquid as the companies contributing the most to this volume.