Binance has announced a $400 million recovery and support program aimed at users and institutional clients who were hit hardest during the recent market meltdown, widely dubbed “Black Friday”. The plan, called the Together Initiative, includes a mix of compensation and financial aid designed to restore trust after what many consider the most volatile event of the year.
The initiative comes in response to widespread user frustration after platform malfunctions and forced liquidations left many traders with heavy losses. Binance says the program is not a legal obligation, but a strategic decision to help stabilize the ecosystem and show long-term commitment to its community.
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$300M in Direct User Compensation
A total of $300 million in USDC will be distributed to retail users who were forcibly liquidated during the October 10–11 flash crash. To qualify, users must have lost at least $50, and those losses must have accounted for at least 30% of their total assets, based on a snapshot taken just before the crash.
Each eligible user will receive between $4 and $6,000 in USDC, depending on the severity of their loss. Binance says distributions will start within 24 hours and be completed within four days. Users will be notified via app and email once their compensation is credited.
In addition to individual compensation, Binance is also launching a $100 million loan program for institutional partners, trading firms, and ecosystem participants. These loans will be issued at low interest rates to help firms recover from liquidity shocks and maintain stable operations.
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Step in the Right Direction
Binance’s move follows heavy criticism after several users reported platform freezes, stablecoin depegs, and a lack of response during the crash. While Binance has denied liability, it acknowledges the damage and says this initiative reflects its “User Focus” philosophy.
By addressing both user losses and institutional liquidity concerns, Binance is trying to get ahead of the narrative and lead the recovery effort. While the compensation doesn’t undo the damage, and many people will not be eligible, it may help calm nerves in an industry still reeling from a brutal week.
