Binance Suspends Bitcoin Withdrawals Twice In 12 Hours
Binance, the world’s largest cryptocurrency exchange, has suspended Bitcoin withdrawals twice in the past 12 hours, causing concern in the community. However, Binance has reassured its users that their funds are safe and has announced plans to introduce withdrawals via the BTC Lightning Network.
JUST IN: Binance to integrate #Bitcoin lightning network.
— Watcher.Guru (@WatcherGuru) May 8, 2023
Backlash over Bitcoin withdrawals suspension
Earlier today, Binance suspended Bitcoin withdrawals again due to a high volume of pending transactions. After three hours, the exchange reopened Bitcoin withdrawals, but it was necessary to increase transaction fees to process the backlog of pending transactions.
Following the suspension of Bitcoin withdrawals, some people questioned the exchange’s financial stability, causing a wave of FUD (fear, uncertainty, and doubt). Nevertheless, Binance has reassured its users that their funds are safe, and outlined measures to avoid similar incidents in the future. The measures include adjusting fees and enabling withdrawals via the BTC Lightning Network, which is expected to be useful in similar scenarios.
Record-breaking Bitcoin Outflows
Binance has been making headlines for its outflows, with recent data indicating that the exchange saw its largest-ever withdrawal in history, with over 162,000 BTC leaving the platform. This has caused the price of Bitcoin to decline further. At the time of writing, the price of Bitcoin was $28,200, with a daily drop of 2.36%. The community has questioned the exchange’s solvency and labelled the incident a “big red flag.” In response, Binance took to Twitter to address the FUD, revealing that the outflows were movements between the exchange’s hot and cold wallets due to BTC address adjustments.
Binance’s decision to suspend Bitcoin withdrawals and the subsequent FUD has caused concern among the cryptocurrency community. However, the exchange has taken measures to address the situation and reassure users that their funds are safe. The introduction of withdrawals via the BTC Lightning Network is a positive step towards avoiding similar incidents in the future.