Binance Suspends Deposit and Withdrawal Support for 8 Bridged Tokens

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Key takeaways:

  • The cryptocurrency exchange Binance has announced that it will stop processing deposits and withdrawals as of July 7, 2023.
  • The decision has an impact on users of bridging tokens on networks like BNB Smart Chain, Fantom, Ethereum, and Avalanche.

With effect from July 7, 2023, until further notice, cryptocurrency exchange Binance has stated it will no longer handle deposits and withdrawals for a number of Multichain-bridged tokens.

In a July 5 update, Binance said in a blog post that its users wouldn’t be able to deposit or withdraw digital assets from blockchain networks, such as Fantom (FTM), BNB Smart Chain, Ethereum (ETH), and Avalanche (AVAX).

The following tokens will be affected: (AVA) via Ethereum; Polkastarter (POLS), Alchemy Pay (ACH), SuperVerse (SUPER), and Harvest Finance (FARM) via the BNB Smart Chain; Beefy Finance (BIFI) and Alpaca Finance (ALPACA) via the Fantom network; Spell Token (SPELL) via the Avalanche C-Chain.

In the release, Binance expressed regret for the inconvenience and emphasized that the Multichain protocol’s persistent difficulties are the direct cause of the support’s suspension. Deposits for these assets will continue to be accepted on other networks in the interim by the exchange, the statement said.

According to a spokesperson from Binance, the momentary suspension of deposit and withdrawal options for the listed tokens is part of an ongoing risk management strategy designed to protect the funds of customers. Users will not experience any impact on the trading of the coins on Binance, and they will be able to withdraw these coins through alternative networks without any change in their account balances as a result of this change.

The Multichain team announced in May that, due to rumors that CZ, the CEO of the company, had been detained in China, they had been unable to reach him. Around this time, the protocol’s cross-chain bridge underwent an improperly planned upgrade, which the team blamed on “force majeure.”

Following the suspension of deposits for a number of Multichain-bridged tokens on May 25, 2023, following a series of blocked transactions, which raised doubts about the trustworthiness of Multichain, this news comes as a surprise.

Recent investigations into Binance Australia’s derivatives trading activity have been initiated by the Australian Securities and Investments Commission (ASIC). This comes after Binance’s derivative license in Australia was terminated in April, forcing the exchange to shut down associated operations.

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