06-16-2022 icon

Binance Restores Bitcoin Withdrawals, Gives Reason for Initial Halt

By Lucy Adegbe
Zhao

Global crypto exchange Binance has given reasons for the momentary withdrawal challenge involving bitcoin in a lineup of tweets on Monday. 

The exchange platform had experienced some hitches which led to a pause on bitcoin withdrawals in the late hours of June 12. The company’s CEO, Changpeng Zhao had initially highlighted that the issue was “due to a stuck transaction causing a backlog.” It was expected to be rectified in thirty minutes. However, a later tweet after noon UTC revealed that the issue might take a while longer than initially anticipated. 

According to Binance, it was “repairing several minor hardware failures on the wallet consolidation nodes earlier today, which caused the earlier transactions that were pending to be broadcast to the network after the nodes were repaired.”

The company explained that “these pending consolidation transactions have a low gas fee, which resulted in the later withdrawal transaction – which were pointing to the pending consolidation UTXO – getting stuck and not able to be processed successfully.” (UTXO simply implies unspent trade output.)

To effectively rectify the issue, Binance further explained that it moved on to “change the logic to only take successful UTXO from the consolidation transactions or successful withdrawal transactions. This fix will also prevent the same issue from happening again.”

The statement is expected to inevitably alleviate the worries of users who may be skeptical about the momentary halt of withdrawals on Binance as well as the Celsius platform who justified that their action is due to “extreme market conditions.”