Binance Reveals Incident That Forced It to Freeze BTC Withdrawals – Binance identified the “repairing of several minor hardware issues on wallet consolidation” as the incident that ultimately led it to pause withdrawals in a comment released shortly after it lifted the freeze on bitcoin withdrawals.
Binance stated it altered the logic “to only take successful UTXO from consolidation transactions or successful withdrawal transactions” to rectify the problem and prevent it from happening again.
Binance has said that bitcoin withdrawals on its Bitcoin network have resumed just hours after the exchange was forced to freeze withdrawals for three hours due to “a stalled on-chain transaction.” The exchange claimed that users’ deposits were unaffected in a Twitter thread in which it sought to reassure users. During the downtime, users could withdraw over alternative networks, according to the statement.
Binance said that “repairing several minor hardware failures on wallet consolidation nodes” on June 13 caused “earlier transactions that were pending to be broadcast to the network after the nodes were restored” in its post-mortem of the events that forced the exchange to halt withdrawals.
According to the exchange, it was these low-cost transactions that caused transactions to become stalled. The following is an explanation of the exchange:
“Because the pending consolidation transactions had a low gas fee, later withdrawal transactions – which were referring to the pending consolidation UTXO – became stuck and couldn’t be processed successfully.”
Binance stated it had to “modify the mechanism to only take successful UTXO from consolidation transactions or successful withdrawal transactions” to address the problem and prevent it from happening again. Withdrawals on the bitcoin network have resumed as a result of the change, according to the exchange.
Binance Reveals Incident That Forced It to Freeze BTC Withdrawals – Meanwhile, the move by Binance, one of the world’s most popular centralized cryptocurrency trading platforms, to halt withdrawals has infuriated Ray Youssef, the CEO of the peer-to-peer network Paxful. Youssef also used his June 13 tweet to promote the advantages of using a P2P platform.
“While some exchanges, such as Binance, have halted all bitcoin withdrawals, Paxful continues to operate.” “Just like p2p electronic cash like bitcoin, P2P is predicated on the honest principles of sound money,” Youssef stated.
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