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Giant Binance Shares What Caused Backlog on Bitcoin Network, Resumes BTC Withdrawals

Major crypto exchange giant Binance has shared that they had been repairing “minor hardware failures” yesterday. It is resulting in “a stuck transaction”, which then causes a backlog on the Bitcoin (BTC) network. This led to the company pausing BTC withdrawals for about three hours.

In a post-mortem, the exchange detailed that the issue arose when they were “repairing several minor hardware failures on wallet consolidation nodes. This is causing the earlier transactions to go on pending.

The company added that those pending consolidation transactions had a low gas fee and caused the later withdrawal transactions, “which were pointing to the pending consolidation UTXO [unspent transaction output],” to get stuck.

The exchange repeated that during the entire time that Bitcoin withdrawals. Giant Binance CEO Changpeng Zhao (CZ) also shared the hash of one specific transaction.

While all evidence seems to support Binance’s explanation, some users still argue about the exchange. It may be using fractional reserve systems, allowing customers to trade in “naked” Bitcoin.

The news comes as bitcoin is tumbling more than 10% on Monday. It is breaking below $24,000 and sinking to the lowest level since December 2020.

The largest cryptocurrency has been hit by macroeconomic concerns, including rampant inflation.

Binance is the world’s largest crypto exchange. The company handles spot trading volumes of more than $14 billion and nearly $50 billion in derivatives volume in a single day, according to data from CoinGecko.


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