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Binance announced that it has resumed withdrawals after finding a fix for several on-chain transactions stuck on the Bitcoin blockchain as the BTC price collapsed.
Monday, June 13, was one of the darkest days of the crypto bear market. As the BTC price crashed straight 17% to $22,000, the world’s largest crypto exchange Binance decided to halt withdrawals.
Binance Had to Halt Withdrawals
The company said that they had to pause because of “stuck on-chain transactions”. The announcement stated:
“Binance has temporarily paused Bitcoin withdrawals on the $BTC network. Meanwhile, you can still withdraw BTC on other networks. This is due to a stuck on-chain transaction. Our team is currently working on a solution and will provide further updates soon”.
Soon after the company paused the withdrawals, Binance CEO Changpeng Zhao assured that the situation would be normal in 20 minutes. However, he later announced that it would take a bit longer than estimated. In an assurance to users, CZ said that all funds are “SAFU”.
Binance resumed the withdrawals some three and a half hours after CZ’s initial tweet. But Binance added that it was “still working to process the pending Bitcoin (BTC) network withdrawals,” for the next few hours. During this period, the exchange said that it would reject any pending network withdrawals.
Binance said that once the orders start flowing, users facing the issue should resubmit their orders.
Binance Guiding Users
With the on-chain transactions getting stuck, Binance’s Twitter account also clarified to users that they could use other networks to withdraw their BTC. This includes Binance’s own BNB network and the Ethereum network.
Binance said that these blockchains were functioning normally at the time of notice. Binance said that there was a “batch of transactions” that the exchange was unable to process. Binance said that the on-chain transactions were stuck because they were submitted to the exchange with “low transaction fees”. This ultimately resulted in a backlog of Bitcoin withdrawals.
On Monday, apart from Binance, the Celsius Network announced that it will be pausing all withdrawals owing to a major liquidity crisis on the platform. the platform’s trouble started when its staked ETH (stETH) started to de-peg from the original Ether.
On Monday, heavy liquidations with high trading volumes appeared as the crypto market tanked under a $1 trillion market cap. 200 has so far proved to be a year of brutal sell-off for all investors.