This event took place amid a high trading volume of nearly $100 billion across various crypto platforms
On an active day in the crypto currency market, Binance, one of the leading crypto exchanges, temporarily halted crypto currency withdrawals because of a technical issue with a middleware service. This event took place amid a high trading volume of nearly $100 billion across various crypto platforms. The last Ethereum withdrawal from Binance was logged at 10:45 UTC on Wednesday.
Chief Executive Officer Changpeng Zhao of Binance promptly acknowledged the problem on Twitter and through their X account, assuring users that all funds were secured under the Secure Asset Fund for Users (SAFU) protocol and that fiat transactions remained unaffected. This swift reaction underlines the crypto exchange’s commitment to transparency and user security, attributes that have earned it admiration in the industry.
The pause in withdrawals coincided with Bitcoin’s rally to a 16-month peak of $34,300 and ongoing speculation around spot Bitcoin exchange-traded fund (ETF) applications. Notably, BlackRock ‘s iShares ETF (IBTC) appeared on the Depository Trust & Clearing Corporation’s (DTCC) website after the collapse of SBF’s FTX in November 2022, despite still awaiting approval from the U.S. SEC (Securities and Exchange Commission).
This incident is not without precedent. A similar situation arose in 2021 when Binance suspended crypto currency withdrawals for nearly 25 minutes because of backlog issues.
Stressing the importance of technical durability in the swiftly expanding crypto exchange industry, Binance addressed the issue within an hour and restarted normal operations. This event highlights how crucial reliability and quick resolution of issues are in the fast-paced crypto market environment.