In the last 24 hours, the world’s largest crypto exchange has been under heavy fire again on Twitter. The exchange had to suspend Bitcoins (BTC) withdrawals several times due to alleged “congestion.” Currently, this should work again. Massive withdrawals of whales were also reported. However, Binance has explained on Twitter that these massive outflows from Binance wallets would only have reflected transactions between hot and cold wallets.
Reportedly, the data would have shown that 162,000 BTC worth $4.6 billion were withdrawn. This would be the largest withdrawal in Binance history. If the Twitter statement, Binance explained is correct, these volumes must be put into perspective. For weeks, Binance has been announcing the restructuring of the wallet addresses via email and informing users that these will be changed.
To prevent future withdrawal “congestion,” Binance adjusted its fees, the crypto exchange said on Twitter. Binance CEO Changpeng Zhao (CZ) argued, “Gas prices fluctuate and go up, transactions get stuck, fees go up, people complain. Bull market issues…” So, let’s hope the withdrawal “congestions” is really a “bull market issue” that can be cured by fees.
Binance is currently under fire from the U.S. regulatory authorities SEC and CFTC. Moreover, the U.S. Justice Department is also investigating Binance on suspicion of circumventing Western sanctions against Russia (report here).
It is, therefore, logical that the markets are nervous.
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