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Binance Reveals Incident That Forced It to Freeze BTC Withdrawals

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In a report published shortly after the lifting of the Bitcoin withdrawal ban, Binance identified “fixing several minor hardware failures in wallet consolidation” as the incident that ultimately forced it to suspend withdrawals. To address the issue and prevent it from happening again, Binance said it changed the logic “to only take successful UTXOs from consolidation transactions or successful withdrawal transactions.”

Minor hardware glitches

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Binance said Bitcoin withdrawals on its bitcoin network resumed just hours after a “stuck transaction on the network” forced the exchange to freeze withdrawals for approximately three hours. According to a Twitter thread in which it tries to reassure users, the exchange said user deposits were unaffected. He added that users had the option to withdraw funds through other networks during the downtime.

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Binance reveals the incident that caused it to freeze BTC withdrawals

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In his posthumous Regarding the events that forced the exchange to suspend withdrawals, Binance stated that “fixing several minor hardware failures at wallet consolidation nodes” on June 13th resulted in “earlier transactions that were expected to have been committed to the network following node repairs.” “.

According to the exchange, it was these transactions with low gas fees that led to the freezing of transactions. The exchange explained:

These pending consolidation transactions had low gas fees, which caused later withdrawal transactions that indicated pending UTXO consolidation to be stuck and could not be processed successfully.

Therefore, in order to fix this and prevent this from happening again, Binance stated that it should “change the logic to only receive successful UTXOs from consolidation transactions or successful withdrawal transactions.” Withdrawals on the bitcoin network have resumed following this change, the exchange said.

Binance reveals the incident that caused it to freeze BTC withdrawals

Centralized finance vs. P2P

Meanwhile, the decision of Binance, one of the world’s leading centralized cryptocurrency exchanges, to freeze withdrawals has sparked an outcry from P2P platform Paxful CEO Ray Youssef. In his June 13 tweetYoussef also took the opportunity to talk about the benefits of using a P2P platform.

“While exchanges like Binance have stopped withdrawing Bitcoin, Paxful remains open. P2P is built on fair money principles, just like p2p electronic money like bitcoin,” Youssef said.

Paxful’s CEO ends his tweet by questioning Binance’s decision to “leave all crap coin withdrawals open”.

In response to Youssef’s tweet, one of the Twitter users under the name Crypto Journal said: “Good thing I told people yesterday after CZ’s post. In short, Binance operates like CEFI. [centralized finance] these guys are pirates, they don’t care about the little guys. They are afraid that if people start withdrawing money, they will not be able to meet because most of the bitcoins are on credit.”

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Credit : news.bitcoin.com

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