Binance suspends deposits and withdrawals , cites technical glitch

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Key Takeaways:

  • Binance, the world’s biggest cryptocurrency exchange, has briefly suspended spot trading due to a platform issue.
  • According to the platform,  initial investigation demonstrates that the matching engine experienced an issue on a final stop order.

Due to what it described as a technical problem, Binance, the biggest cryptocurrency trading platform in the world, has briefly halted spot trading as well as deposits and withdrawals.

The crypto behemoth notified its users that a team has been attempting to find a quick solution to the problem. In a tweet, Changpeng Zhao, CEO of Binance, stated that “initial analysis indicates a matching engine encountered a bug on a trailing stop order,” stressing that the suspension of deposits and withdrawals was normal functioning protocol.

Engine 1 is operational again” Zhao tweeted shortly after, “Still need more time to do reconciliations, and for other engines to keep up.”

The matching engine had bugs, according to the early analysis, according to tweets made by Binance CEO Changpeng “CZ” Zhao. He stated that the bug was found on a trailing stop order and that it could take up to 120 minutes to be rectified.

Withdrawals and deposits are halted as per standard operating protocol. Funds are #SAFU,” CZ tweeted.

Despite the Binance team’s assurances that they are working to fix this, BTC and the rest of the cryptocurrency market immediately experienced price declines in response.

Bitcoin dropped 2.2%, from almost  $28,073 to around $27,456. It has since risen to $28,068. Ethereum has also dropped 3% from $1,789.05 to $1,730. Since then, it has recovered marginally to $1,765.50.

While some users chuckled about the situation or recommended switching to decentralised exchanges, others expressed concern over the technical problem at hand.

But the CEO reassured that software errors do occur in that way. Sequential state machines are what matching algorithms are. Future purchases are impacted by previous orders. For security purposes, the matching engine halts if one request comes across a bug.

This is not the first time Binance has pulled plugs on withdrawals and payments. Binance announced in March that it had briefly suspended auto-conversion of USDC to BUSD due to volatility in the market, especially elevated inflows and an increasing burden to support the conversion. 

The CEO, on the other hand, disclosed that it was a standard risk-management procedure to take while the exchange monitored the scenario.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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