Crypto derivatives platform edgeX has started distributing compensation to users impacted by the sharp market disruption that hit its native EDGE token on June 2, completing the first phase of its goodwill payment program.
The company confirmed that eligible users have now received 50% of their approved compensation in USDC. The remaining balance is scheduled for distribution in the first week of April 2027 and will be paid in EDGE tokens.
According to edgeX, the compensation program covers users whose EDGE long positions were liquidated or stopped out on edgeX Perp V1 and V2 between 04:50 and 06:00 UTC+8 during the market turmoil.
Goodwill Payment Distribution Update
The goodwill payments for eligible users affected by the June 2 incident have now been successfully distributed.
This program covers eligible users who opened a edgeX Discord ticket and confirmed incurred realized losses resulting from the… https://t.co/JR975RCeAx
— edgeX🦭 (@edgeX_exchange) June 8, 2026
First compensation tranche paid in USDC
edgeX said the initial round of payments has been successfully distributed through its rewards page. Compensation is based on verified realized losses linked to affected orders during the incident.
The exchange clarified that trading fees, funding costs, and unrealized profits are not included in the compensation calculations. Eligible users are also subject to a maximum payout cap of 100,000 USDC equivalent across both compensation phases.
The second tranche will be distributed in EDGE tokens during the first week of April 2027. The number of tokens each user receives will be determined using the seven-day average price of EDGE before the distribution date.
edgeX stated that the token allocation for the second payment will come from its Ecosystem and Community Allocation, which remains locked following the token generation event and is scheduled to begin vesting on March 31, 2027.
Massive sell-off triggered long liquidations
The June 2 crash began after 174 wallet addresses reportedly executed large EDGE sell orders into a relatively shallow liquidity pool on PancakeSwap within a one-minute period.
The initial wave of selling pushed the token price down by roughly 23%, with the decline quickly spreading to centralized exchanges and derivatives markets. edgeX reported approximately $140.66 million in combined sell volume across Binance, OKX, Bybit, and its own perpetual trading platform between 05:00 and 06:00 UTC+8.
The platform noted that long positions were heavily concentrated at the time, with a long-short ratio of 68.2%, contributing to a cascade of forced liquidations as prices fell.
Meanwhile, the team behind the Verus blockchain has recovered most of the funds stolen in its recent bridge exploit after the attacker returned 4,052 Ether worth about $8.5 million in exchange for a bounty payout.
ZachXBT challenges edgeX findings
Blockchain investigator ZachXBT publicly questioned edgeX’s explanation of the incident, arguing that the project should disclose details about its market makers and related agreements.
He also alleged that insiders controlled a significant portion of the token supply and criticized the platform’s conclusions regarding the sell-off.
edgeX rejected claims that team-linked wallets sold tokens during the crash. The company said preliminary reviews conducted with exchanges and liquidity providers found no evidence of team involvement in the selling activity.
To support its investigation, edgeX has announced a 200,000 USDC bounty for information that helps identify the wallets responsible for initiating the sell-off.
Meanwhile, users who have not yet registered for compensation must submit their claims through the platform’s Discord channel before the June 9 deadline. edgeX said a final 24-hour grace period has been granted, after which unregistered users will no longer qualify for the goodwill payment program.
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