An oracle vulnerability on Binance contributed to Friday’s market crash, which clocked in as the largest liquidation event in history at $19 B. In this article, Cointelegraph Research analyses newly released forensic orderbook data from the crash. The recent crash on Oct. 10 was the largest liquidation event in the crypto market’s history. More than $19 B was liquidated, according to CoinGlass data, leading to a $65 B decline in open interest. This number dwarfs other memorable liquidation cascades such as the COVID-19 crash with $1.2 B, or even the FTX collapse at $1.6 B in liquidations. In the aftermath, consensus among investigators emerged that the event was at least partially caused by vulnerable pricing oracles on the Binance exchange. The collateral value of three pegged crypto tokens, namely USDE, bnSOL and wBETH, was determined from Binance’s internal orderbook data instead of an external oracle. This puts users of the “Unified Accounts” feature at risk of liquidation during market irregularities. I...
Japan is set to amend its rules, which would empower its securities regulator to investigate and punish those involved in crypto-related insider trading. Japan’s securities regulator is reportedly set to introduce regulations to ban and punish crypto insider trading, bringing it more in line with how the country handles stock trading. Japan’s Securities and Exchange Surveillance Commission would be authorized to investigate suspicious trading activity and hit violators with fines based on how much they profited from insider trading, Nikkei Asia reported on Tuesday. The securities regulator would also make criminal referrals in more serious cases. Read more
Binance and BNB Chain have pledged a total of $728 million in support for traders following the sell-off, but the exchange maintains it is not responsible for users’ losses. Binance is launching a $400 million relief program for traders affected by losses across its ecosystem during Friday’s crypto sell-off, despite saying it does not accept liability for user losses. According to a Tuesday post by the exchange, the initiative will distribute $300 million worth of token vouchers, ranging in value from $4 to $6,000, to eligible users. To qualify, traders must have incurred forced liquidations on futures or margin positions between Oct. 10, 2025, 00:00 UTC and Oct. 11, 2025, 23:59 UTC. Users must have lost at least $50 in crypto, and those losses must account for at least 30% of their total net assets, based on a snapshot taken on Oct. 9, 2025, at 23:59 UTC. The distribution is expected to be completed within 96 hours. Read more
The bill, if passed, would codify US President Donald Trump's executive order allowing retirement plans to include "alternative assets," including cryptocurrencies. A lawmaker in the US House of Representatives has reportedly introduced a bill that would codify — make into law — an executive order by President Donald Trump allowing alternative assets such as cryptocurrencies to be included in 401(k) retirement accounts. Republican Representative Troy Downing introduced a draft bill in the House Financial Services Committee that would give Executive Order 14330 the force of law, Politico reported on Tuesday. The order, which Trump issued on Aug. 7, says every American preparing for retirement should have access to funds that include “alternative assets” when deemed appropriate by a plan fiduciary. Read more