{"id":12752,"date":"2022-06-14T22:24:57","date_gmt":"2022-06-14T22:24:57","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-reveals-incident-that-forced-it-to-freeze-btc-withdrawals-featured-bitcoin-news\/"},"modified":"2022-06-14T22:24:57","modified_gmt":"2022-06-14T22:24:57","slug":"binance-reveals-incident-that-forced-it-to-freeze-btc-withdrawals-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-reveals-incident-that-forced-it-to-freeze-btc-withdrawals-featured-bitcoin-news\/","title":{"rendered":"Binance Reveals Incident That Forced It to Freeze BTC Withdrawals \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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In a post-mortem issued shortly after it lifted the freeze on bitcoin withdrawals, Binance has identified the \u201crepairing of several minor hardware failures on wallet consolidation\u201d as the incident that ultimately forced it to pause withdrawals. To fix the problem and to stop this from recurring, Binance said it changed the logic \u201cto only take successful UTXO from consolidation transactions or successful withdrawal transactions.\u201d<\/strong><\/p>\n

Minor Hardware Failures<\/h2>\n

Binance has said bitcoin withdrawals on its Bitcoin network have resumed just hours after \u201ca stuck on-chain transaction\u201d forced the exchange to freeze withdrawals for about three hours. According to a Twitter thread in which it seeks to reassure users, the exchange claimed that users\u2019 deposits were unaffected. It added that users had an option to withdraw via other networks during the down period.<\/p>\n

\"Binance<\/p>\n

In its post-mortem<\/a> of the events that forced the exchange to halt withdrawals, Binance claimed that the \u201crepairing several minor hardware failures on wallet consolidation nodes\u201d on June 13, had caused the \u201cearlier transactions that were pending to be broadcast to the network after the nodes were repaired.\u201d<\/p>\n

According to the exchange, it was these transactions, which had a low gas fee, that led to transactions getting stuck. The exchange explained:<\/p>\n

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These pending consolidation transactions had a low gas fee, which resulted in the later withdrawal transactions \u2013 which were pointing to the pending consolidation UTXO \u2013 getting stuck and not able to be processed successfully.<\/p>\n<\/blockquote>\n

Therefore, to fix this and prevent this from recurring, Binance said it had to \u201cchange the logic to only take successful UTXO from consolidation transactions or successful withdrawal transactions.\u201d Following this change, withdrawals on the bitcoin network have resumed, the exchange said.<\/p>\n

\"Binance<\/p>\n

Centralized Finance vs P2P<\/h2>\n

Meanwhile, the decision to freeze withdrawals by Binance, one of the top centralized cryptocurrency exchange platforms globally, has sparked an angry reaction from the CEO of the peer-to-peer platform Paxful, Ray Youssef. In his June 13 tweet<\/a>, Youssef also took the opportunity to tout the benefits of using a P2P platform.<\/p>\n

\u201cWhile exchanges like Binance have stopped all bitcoin withdrawals Paxful remains open. P2P is built on the honest principles of sound money just like p2p electronic cash ala bitcoin,\u201d Youssef said.<\/p>\n

The Paxful CEO ends his tweet by questioning Binance\u2019s decision to \u201cleave all sh*tcoin withdrawals open.\u201d<\/p>\n

Reacting to Youssef\u2019s tweet, one Twitter user named Crypto Journal said<\/a>: \u201cNice one just what I was telling people yesterday after CZ\u2019s post. To keep it short Binance operates like CEFI [centralized finance] those guys are buccaneers they don\u2019t care about the little guys. They fear if people start withdrawing they can\u2019t meet up cause most of the bitcoins are on loan.\u201d<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Primakov<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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