This morning, Binance revealed a significant purchase of Bitcoin (BTC) totaling $1 billion, drawn from its Secure Asset Fund for Users (SAFU). However, this effort to bolster confidence in the exchange has not been effective following the catastrophic liquidations that occurred on October 10, 2025, during a severe market downturn.
The crisis was triggered by a statement from former President Donald Trump, who threatened China with an unprecedented 100% import tariff rate. This announcement led to widespread panic among investors, resulting in a 14% drop in Bitcoin and even steeper declines for smaller digital assets. At one point, the native coin of the Cosmos blockchain plummeted by 99.99% on Binance.
Amid the chaos, unverified rumors circulated suggesting that Binance or one of its associated funds had intervened to purchase coins at significantly reduced prices. Regardless of the truth behind these claims, skepticism remains high. Critics doubt that Binance has adequately addressed the repercussions of the October incident, as evidenced by the ongoing dissatisfaction voiced by users.
As of the time of writing, Bitcoin is trading at $83,000, representing a 32% decline from its $122,000 price on October 10. The trading volume over the past 24 hours exceeded $80 billion, which raises further questions about the effectiveness of Binance”s recent buy in stabilizing the market.
In the aftermath of the October 10 crisis, a viral post from ElonTrades attributed approximately $19 billion in liquidations primarily to Binance. This criticism focused on potential flaws in the exchange”s oracle design and issues related to its cross-margin Unified Account system involving the USDE stablecoin. Notably, the unusually low prices for numerous assets were only observed on Binance during this period.
Binance has partially acknowledged its unique role in the trading turmoil, having issued substantial payouts to affected users. The exchange compensated $283 million to users holding USDE, BNSOL, and WBETH as collateral who were impacted by the depeg. Additionally, it committed $100 million in low-interest loans and offered $300 million in Rewards Hub vouchers to users who suffered losses of at least $50 due to forced liquidations. Furthermore, $45 million was allocated to BNB memecoin investors who incurred losses during this market event.
Despite these payouts, many users remain unimpressed. The overall industry experienced around $19 billion in liquidations, with total mark-to-market losses reaching up to $600 billion. Legal representatives of affected users have promptly initiated class action lawsuits against Binance. The CEO of OKX remarked that the damage inflicted on Binance from the October incident is “real and lasting.”
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