After a brief period of time during which the service was not available, the prominent cryptocurrency exchange Binance resumed withdrawals of Bitcoin (BTC).
The cryptocurrency exchange made the announcement earlier today that it will temporarily halt Bitcoin withdrawals because of a backlog caused by on-chain transactions that got stuck.
The decision to suspend trading was made following a spectacular sell-off that occurred in the early hours of Monday. This sell-off drove the overall market value of cryptocurrencies to a new low of $977 billion, down from the $1.10 trillion it recorded the day before.
Bitcoin’s value fell by more than 10 percent, reaching lows not seen since the year 2020’s end, as a result of the slaughter. At the time this article was written, the most prominent cryptocurrency had a market cap of 23,300 dollars.
According to Binance CEO Changpeng Zhao (CZ), while the suspension was meant to run for a period of thirty minutes, things did not go as planned, and it took the exchange longer than anticipated to complete the process.
After assuring its customers that their monies would be secure, CZ subsequently informed its users that the suspension would take a few hours to complete.
The cryptocurrency exchange temporarily halted BTC withdrawals and then declared, three hours later, that customers may once again make withdrawal requests over the Bitcoin network while also clarifying what caused the problem.
Previous on today, they were fixing a few minor hardware failures that had occurred on wallet consolidation nodes. Because of this, the earlier transactions that had been pending were broadcast to the network when the nodes were fixed.
In a post-mortem update, Binance explained that because these pending consolidation transactions had a low gas fee, later withdrawal transactions, which were pointing to the pending consolidation UTXO, became stuck and were unable to be processed successfully. This is because the later withdrawal transactions were pointing to the pending consolidation of UTXO.
The exchange said that it needed to modify its algorithm so that it would only accept successful UTXO from successful consolidation transactions or successful withdrawal transactions in order to resolve the problem. In addition, the organization said that the problem will not occur again now that it has been resolved.