Binance halts Bitcoin withdrawals for the second time in 12 hours

Binance halts Bitcoin withdrawals for the second time in 12 hours

On May 8, cryptocurrency exchange Binance blocked Bitcoin BTC withdrawals for the second time, citing a huge backlog of pending withdrawals.
Binance announced on May 8 that it had “temporarily” suspended BTC withdrawals due to a “large volume of pending transactions.”
The transactions were still pending, according to the company, since its “set fees did not anticipate the recent surge in [Bitcoin] network gas fees.”

Read Also: Who was front-running Binance users

Almost two hours after its initial tweet, the exchange released an update, stating that it was “replacing the pending [Bitcoin] withdrawal transactions with a higher fee so that they get picked up by mining pools.”
Binance announced over three hours after its original tweet that Bitcoin withdrawals have begun, with pending transactions being processed at higher transaction fees.
It also stated that it was working on facilitating withdrawals via the Lightning Network, which it claimed might help alleviate future withdrawal halts.

Read Also: Binance Considers Pulling Back From US Partners as Crypto Crackdown Escalates

Earlier on May 7, Binance also had to temporarily suspend Bitcoin withdrawals, claiming there was an overflow of transactions on the blockchain. It reopened withdrawals over an hour and a half later.
The Bitcoin mempool had a backlog of roughly 400,000 transactions waiting to be processed at the time. According to mempool.space data, this had increased to approximately 485,000 at the time of Binance’s second withdrawal halt.

A mempool is a place on the Bitcoin network where transactions “wait” before being validated by each blockchain node.

Read Also: Binance Coin’s [BNB] breakout above $300 means this for the market’s bulls

According to CryptoQuant statistics, Binance had large Bitcoin net negative withdrawals on May 7, with roughly 175,650 BTC worth around $4.95 billion leaving the exchange that day.
Binance claimed that the outflow data was caused by the exchange of Bitcoin between its hot and cold wallets.

Share to Social Media

Share on facebook
Share on telegram
Share on twitter
Share on linkedin
Share on pinterest
Share on reddit
Share on whatsapp

Recent News

Hot stories

Join Our Newsletter