Binance to Refund Users $1 Million Over Handling of CyberConnect Token Incident
Summary:
Binance is refunding users 1 million Tether ($1 million) after mishandling the CyberConnect (CYBER) token incident. They will increase interest rates on staked assets and offer compensation to affected users. The incident occurred due to a price discrepancy caused by a liquidity crunch on Upbit.
Binance, the popular cryptocurrency exchange, is returning 1 million Tether ($1 million) to its users after mishandling the CyberConnect (CYBER) token incident. The incident occurred when a liquidity crunch on Korean exchange Upbit caused a price discrepancy on listed CYBER tokens, leading arbitrageurs to borrow CYBER from Binance. As a result, Binance users who had staked CYBER in its Flexible Earn Program were unable to redeem their assets as they had been borrowed. To address the issue, Binance will increase interest rates on staked assets during periods of high token volatility. As compensation, the exchange will offer 800,000 Tether and staking rewards to affected users. Additionally, 200,000 USDT worth of vouchers, sponsored by the CyberConnect Foundation, will be distributed to all users who staked CYBER on Binance, regardless of whether they redeemed their tokens. Binance has the right to amend or cancel this announcement at any time without prior notice.
Published At
9/7/2023 3:26:33 PM
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