Binance Haults All Bitcoin Withdrawals !!

[Edwardard]

Due to high congestion in the mempool, binance has stopped its withdrawal services for the bitcoin network.
Is that a good move ? Imo they could've just raised the fees option and let ppl decide if they still want to withdraw with a higher fee rather than completely haulting it and not letting anyone withdraw.
Also, any thoughts upon when will the mempool start cooling itself ? Its on a slow rise everyday and its surprising to see its getting hot even on the late  weekend.

Source: https://twitter.com/binance/status/1655227965062672384

[Oshosondy]

That is another lesson for those that depends on custodial means of saving. There is nothing better than noncustodial wallet which you can use and have complete control of your coins.

We are traders too, using the amount of money we can lose to trade. It is nothing that we should consider than to wait.

[OmegaStarScream]

Is that a good move ? Imo they could've just raised the fees option and let ppl decide if they still want to withdraw with a higher fee rather than completely haulting it and not letting anyone withdraw.

Binance is charging users more than enough to process withdrawals, even with the current mempool state. It sounds to me like they are having technical issues, and they're not voluntarily doing this simply because the network is congested otherwise, what would "working on a fix" mean?

Our team is currently working on a fix until the network is stabilized and will reopen $BTC withdrawals as soon as possible.

[Oshosondy]

Binance is charging users more than enough to process withdrawals. It sounds to me like they are having technical issues, and they're not voluntarily doing this simply because the network is congested otherwise, what would "working on a fix" mean?

Our team is currently working on a fix until the network is stabilized and will reopen $BTC withdrawals as soon as possible.

Until the network is stabilized sound like it is pertaining to the network, I mean how the mempool is currently congested. If not it, it will still be indirectly related to it.

Bitcoin fee on Binance was 0.0002 which is $5.78 when bitcoin is at $28900.

This is what the mempool is say: mempool.space $8.15 for highest fee at 201 sat/vbyte.

[tabas]

And from there, won't be surprised if other exchanges will follow what Binance did and will all reason out that it's all due to the congestion in the mempool.
I think this is the first time that I've seen them halting bitcoin withdrawals due to the network traffic aside from seeing that exchange like them suspends withdrawals during the bull run. Because even in the year of 2017 where it's known to be highly congested, there's not much issue like this of halting bitcoin transactions through exchanges but they've all adjusted the fees. So from this, that's probably the best decision that they can while working for some other things that shall benefit them.

[stompix]

Wow, the amount of BS in that announcement
- Binance was charging 5x times the fees it was paying it it has always overpaid
- Binance has its own mining pool with 10% of the mined blocks, they could easily process their own transactions

The real reasons are:
- Binance doesn't want to miss on the juicy fees it mines in its blocks
- Binance can't make profits any longer even while overcharging customers with fees
- CZ as always is a piece of s..omethign and has again seen the opportunity to attack Bitcoin to promote his shitcoin

[crwth]

Well, that's a reasonable precaution from them IMO because they might get backlash from not doing anything about it and might even look like they are taking advantage of fees, etc. Maybe they don't want the hassle and just steer clear of it or something. It's better to withdraw using other coins if you are in need but if not, just stay with it.

[Oshosondy]

Wow, the amount of BS in that announcement
- Binance was charging 5x times the fees it was paying it it has always overpaid
- Binance has its own mining pool with 10% of the mined blocks, they could easily process their own transactions

The real reasons are:
- Binance doesn't want to miss on the juicy fees it mines in its blocks
- Binance can't make profits any longer even while overcharging customers with fees
- CZ as always is a piece of s..omethign and has again seen the opportunity to attack Bitcoin to promote his shitcoin

The mempool has gotten congested to the level Binance is no more charging 10x higher. The mempool is becoming something else. Because Binance process transactions with many outputs, if not that, Binance would have been paying more.

Bitcoin fee on Binance was 0.0002 which is $5.78 when bitcoin is at $28900.

This is what the mempool is say: mempool.space $8.15 for highest fee at 201 sat/vbyte.

[stompix]

~

The mempool has gotten congested to the level Binance is no more charging 10x higher. The mempool is becoming something else. Because Binance process transactions with many outputs, if not that, Binance would have been paying more.

Bitcoin fee on Binance was 0.0002 which is $5.78 when bitcoin is at $28900.
This is what the mempool is say: mempool.space $8.15 for highest fee at 201 sat/vbyte.

You're making a mess of sat and dollars.
The $8.15 is for a single input one output transaction, Binance is not doing any of those
Here is an example of Binance doing a tx:
https://mempool.space/tx/e097cd778c171aee685baf67f63a96a09f0160685108c2d13ec65c83980b0332
297 sat/vB  Fee   575,000 sat $166.56  and it has 78 outputs.
So it has paid $166/78 > around $2.12 for each withdrawal.
Or in Satoshi, they are charging  20000 and paying right now 7300 for each payment.

[DaveF]

Wonder if it's something in their back end programming. i.e. max fee = x (to prevent a massive screw up) but it's not enough to get into the next few blocks.
So people complain.

So you just stop for a while. It's not like they ever cared for or took care of their customers. They always just had the we do what works for us attitude.
This is just more of the same.

-Dave

[NotATether]

So the exchange that has been chronically throttling the network with its bloated internal transactions for years is now disabling withdrawals to such network because someone else is throttling it more than them?

I'm not surprised, to be honest.  That's why nobody should keep their coins on exchanges. Not your keys, not your coins. Anyway, another reason for the "why I don't use Binance" bucket list.

[jrrsparkles]

Due to high congestion in the mempool, binance has stopped its withdrawal services for the bitcoin network.
Is that a good move ? Imo they could've just raised the fees option and let ppl decide if they still want to withdraw with a higher fee rather than completely haulting it and not letting anyone withdraw.
Also, any thoughts upon when will the mempool start cooling itself ? Its on a slow rise everyday and its surprising to see its getting hot even on the late  weekend.

Source: https://twitter.com/binance/status/1655227965062672384

From another perspective it is a good thing because exchanges contribute to certain extend in the mempool and since the network is highly clogged then Binance thought halting the withdrawals for a day or two may bring some change, as of now its not going in the way as I expected. But anyone who wants to withdraw bitcoin can convert into another altcoin and withdraw it straightaway so that is not going to be a big issue at the moment in my opinion.

[virasog]

So the exchange that has been chronically throttling the network with its bloated internal transactions for years is now disabling withdrawals to such network because someone else is throttling it more than them?

I'm not surprised, to be honest. That's why nobody should keep their coins on exchanges. Not your keys, not your coins. Anyway, another reason for the "why I don't use Binance" bucket list.

The only notable thing was that there was no panic in the market after this news and the prices of bitcoin did not dump. Maybe binance announced the reason as the network was congested and they halted the withdrawals.

A sign of relief after reading this tweet

$BTC withdrawals are now resumed on #Binance.

By the way, was this due to the Bitcoin Ordinals that the network is slow

[bittraffic]

Binance got options on what to do I guess they chose to halt withdrawals and avoid getting blamed by the users due to the high gas fees. They know that  even if this high gas fees is not their fault, users will still be pointing them in regards to how much is subtracted from the amount in withdrawing.

However, not allowing to withdraw angers people still. It just show Binance is in control of your money and you can't do anything unless you withdraw your funds from exchanges.

[Wiwo]

This is why self custody is the best, what for those in an emergency and who want to make urgent withdrawals, this is the same thing we face with traditional banks since they are centralized and have total control, they could decide to hold back customer balance for whatever silly reasons.


Just like Oshoshondi said,  this is a big lesson for those holding their Bitcoin in exchange, because the Bitcoin is in a personal wallet you could decide to pay higher fees and move on with the withdrawal in a situation that demands urgent Bitcoin withdrawal, but yeah this is binance a central exchange so not your keys, not you Bitcoin.

[Potato Chips]

A sign of relief after reading this tweet

$BTC withdrawals are now resumed on #Binance.

Hmmm? the mempool was and is still as clogged as before though. Congestion looks like an excuse to mask there was something wrong on their end lol.

[logfiles]

Hmmm? the mempool was and is still as clogged as before though. Congestion looks like an excuse to mask there was something wrong on their end lol.

Or probably trying to force noobs to withdraw Bitcoin on their shit chain (Binance Smart Chain)
To this date, I have still failed to find the purpose of the copy cat smart chain - BSC

Notice how they make the Bitcoin fee so high in comparison to the that of bitcoin on BSC 

[Dr.Bitcoin_Strange]

A disadvantage to those who prefer CEX over a self-costodial wallet. OP, you are right; binance should have only increased the transaction fee instead of totally halting withdrawals. I just think that whoever is always trusting to keep their funds in the centralized exchange is also agreeing to their terms and policies so that when any issues arise, they can bear the inconveniences that the CEX is going to be causing them. If I want to trade on a CEX, I only move my coin there; otherwise, I see it as a very risky thing to keep coins on exchanges when you are not using them. It's just like keeping our money in the bank, where they can do anything with your funds, like decide to give you conditions to follow before you can access your own money.

[PX-Z]

Well, that's a reasonable precaution from them IMO because they might get backlash from not doing anything about it and might even look like they are taking advantage of fees, etc. Maybe they don't want the hassle and just steer clear of it or something. It's better to withdraw using other coins if you are in need but if not, just stay with it.

Exactly my thought. They can pay higher fees to make transaction confirmed faster but this will only make the network congestion worst. Although, this is not the first time they did this decision and not the first time they were bashed from the community, they always do this when it comes a situation like this and in somewhat way it helps.
As for the disadvantages, well, users are to be blamed first from using such services/platform, now that they are in it, so just go with it until they decided to open the withdrawals again.

[Edwardard]

Woah guys, the mempool just got more crazier than yesterday. I saw the low priority was ~250sats/vB yesterday and now its ~410 sats/vB. But binance decided to open withdrawals again early on. Wonder whats gonna happen next lmao. Im curious to see how much worse the mempool can get.
Also whenever the mempool got highly congested in the past, we witnessed a drop in bitcoin's price thereafter

Edit: And they paused it again, lol!
https://twitter.com/binance/status/1655380303383261185