Binance to reimburse users $1M for Cyber Earn incident


Crypto alternate Binance is refunding users 1 million USDT (USDT) ($1 million) over its dealing with of the CyberJoin (CYBER) token incident.

As described by the alternate on Sept. 7, a value discrepancy on listed CYBER tokens occurred the week prior due to a liquidity crunch constricting CYBER cross-chain bridges on Korean cryptocurrency alternate Upbit. This led to arbitrageurs borrowing CYBER from Binance to revenue from the distinction. In flip, Binance users who staked CYBER in its Flexible Earn Program had been barred from redemptions, because the staked property had been borrowed, reaching the mortgage restrict. The alternate said:

“Other than Proof-of-Stake (PoS) based products, a large part of crypto flexible financial products generate income by lending out subscribed assets to other users via Margin or collateralized loans. Under extreme conditions, borrowers may not be able to repay their loans in time, or the redemptions of subscribed assets may experience some delays. This was the case on 2023-08-31.”

Binance mentioned that transferring ahead, it’s going to take motion to improve rates of interest on staked property to deter lending in periods of excessive token volatility.

As a treatment, the alternate supplied 800,000 USDT to 887 impacted users who couldn’t redeem their CYBER merchandise through the incident, together with 871 CYBER in accrued staking rewards. Another 200,000 USDT value of vouchers, sponsored by the CyberJoin Foundation, will probably be distributed to all users who staked CYBER by way of Binance Flexible Earn through the incident, no matter whether or not they selected to redeem their tokens. The agency additionally wrote:

“Binance reserves the right in its sole discretion to amend or cancel this announcement at any time and for any reasons without prior notice.”

Related: Binance creates smart contract to refund users affected by $3M rug pull