Binance suspends crypto withdrawals due to massive backlog

The exchange Binance temporarily suspended all crypto withdrawals on Monday, following a backlog of crypto withdrawals that accumulated following Bicoin reaching an all time high. Binance released a statement via Twitter addressing the suspension and assuring users that their funds were safe. 

Following bitcoin’s recent price surge and subsequent ATH exchanges were inundated with thousands of new users, with the platform’s trading volume surpassing $1 billion in one day. The result was a backlog that forced Binance to suspend all crypto withdrawals.

“Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today. We have temporarily disabled all crypto withdrawals on http://Binance.com due to a large backlog. Rest assured our team is working on it with top priority. Thank you for your patience and apologies for any inconvenience caused.”

A tweet from the exchange informed users that crypto withdrawals were suspended but were expected to resume within 30 minutes. A follow-up tweet an hour later noted that the platform had still not cleared the backlog, however after two hours the backlog had been cleared and normal processing had resumed.

Insider reported Binance’s temporary suspension, with a Binance spokesperson toelling Insider:

"Today's temporary pause on withdrawing funds was due to a database system issue that impacted our withdrawal service...The team was able to fix the failure and verify that all data and dependencies were working normally before we restarted withdrawals. At no times were users' funds at risk. We apologise for any inconvenience caused."

Binance is one of the world’s biggest crypto exchanges, and is no stranger to outages. In May the platform suffered a major outage which saw outrage from users who were unable to dump their coins. Other platforms such as Binance and Robinhood have also struggled to keep up with the growing demand for crypto, with transactions often accelerating at break-neck pace in correlation to the market. 

While investment in crypto has grown exponentially, regulation across the world is struggling to keep up. The UK’s FCA put out a statement this year, in which the regulator noted that Binance  posed a significant risk to investors in the UK. 

Binance, along with other global exchanges, faces increasing scrutiny from all areas. Investors are increasingly demanding greater access to services in the growing industry, while regulators struggle to keep up with the industry. 

The cryptocurrency market has remained relatively stable since Binance’s surge, and sentiment around Bitcoin is still bullish following the weekend. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.