The world’s largest crypto exchange, Binance, has stepped into the spotlight once again, this time with a $400 million Binance recovery plan designed to rebuild user trust after one of the most shocking market crashes of 2025.
Source: BinanceOfficial
The move comes after a week of chaos and accusations online. Traders blamed the exchange for platform “freezes” during the crash, claiming they couldn’t close losing trades. Some users even accused the exchange of “dumping tokens” to trigger liquidations.
Binance’s co-founder Yi He publicly denied these claims, explaining that exchange’s trading systems remained stable and that the crash was “driven by wider market conditions.”
What Happened: The Crash That Shook the Market
Late on October 10, panic hit the marketplace after former U.S. President Donald Trump announced 100% tariffs on Chinese tech. This sudden move triggered a massive sell-off, leading to one of the biggest crypto crashes of 2025. Prices of Bitcoin (BTC), Ethereum (ETH), BNB, and Solana (SOL) plunged within hours, wiping out leveraged traders and sending fear across the industry.
Many traders said they couldn’t close their positions during the drop. Projects like Morpho, 2Z, Coral Finance, and WhiteBridge Network also saw heavy losses as the market turned red.
“I watched my screen go from green to blood-red in seconds,” one futures trader posted on X.
Binance’s Recovery Plan: a $400 Million Bet
To calm users and restore confidence, the platform has launched the “Together Initiative,” a $400 million rescue and rebuilding effort. The plan includes two parts:
-
$300 Million in USDC for Users: It will distribute up to $6,000 in USDC to each eligible user who suffered forced liquidation losses between October 10–11, 2025. To qualify, users must have lost at least $50 and 30% of their portfolio value during the crash.
-
$100 Million Institutional Fund: Binance-also set up a low-interest institutional loan fund to support ecosystem partners, liquidity providers, and market makers affected by the sell-off. This aims to keep trading environments stable and prevent further chain reactions in liquidity.
Binance-says the goal is clear, to rebuild confidence and “stand by users when the industry needs it most.”
Behind the Drama: BNB Price Surge
Even as Binance-faced accusations of “market manipulation” from angry users online, BNB (Binance’s own ecosystem token) hit an all-time high of $1,370 on October 13, just days after. Meanwhile, over $21 billion flowed out of the exchange in just seven days, according to CoinGlass, showing just how shaken users are.
However, data from CoinMarketCap showed that BNB’s rise was driven by market recovery momentum and growing confidence in BNB’s long-term stability.
When Trust Becomes the Real Currency
From a broader view, Binance’s move feels like a calculated step to protect its image and user base during one of crypto’s most uncertain weeks.
After the $21.7 billion in withdrawals Binance-faced last week, this plan could help slow the outflows and restore calm. It’s a reminder that trust, not trading volume, is the real currency of the crypto world.
Meanwhile, strong belief says Binance’s decision could stabilize short-term sentiment and encourage investors to re-enter the market.
Still, traders should remain careful. The crypto-market is unpredictable, and even big recovery plans can only do so much.
