Binance Technical Glitches: The Brief Story Of The Halt And Resume Of The Cryptocurrency Giant.
While Binance strives to provide a 24-hour, 365-day-a-year service, technical glitches do occur on occasion.
In a tweet from the company’s CEO, Changpeng Zhao, Binance, a prominent cryptocurrency exchange, has temporarily banned deposits and withdrawals on its platform owing to technical issues affecting its spot trading services. According to preliminary research, the matching engine discovered a fault on a trailing stop order, he said in a tweet, adding that the wait in deposits and withdrawals was routine operating practice.
- Bitcoin– Slid 2.2%- $28,073 to around $27,456 after the original news. It has subsequently risen to $28,068.
- Ethereum- Dropped 3%- $1,789.05 to $1,730. Since then, it has rebounded marginally to $1,765.50.
So, what exactly happened with Binance?
Binance’s spot trading was momentarily disabled at 11:27 (UTC). The system has gone offline for the first time since December 2021.
A trailing stop order caused a flaw in the matching engine. The matching engine aids in price discovery by matching buy and sell orders.
The glitch was not something they were used to seeing, so it was a bit unexpected to come across. It’s vital to highlight that this was an internal problem, not an external one.
Even though the engines take hourly snapshots, this problem occurred 57 minutes into the run, hurting the reconciliation time. A variety of products were affected, including the following.
- Spot trading.
- Spot transfers.
- Portfolio margin.
- Spot grid trading.
Throughout the procedure, he tweeted live updates on his own Twitter account. He also informed the community through Binance’s official Twitter account.
He also halted deposits and withdrawals, as well as spot trading. When the matching engine was momentarily suspended, this was done to avoid a potential system accounting issue. The status of orders in the matching engine may impact the amount of money available for withdrawal in user accounts. When they finished the reconciliation, they reopened withdrawals.
Engine one went back up around an hour later. However, more time was required to make reconciliations and for other engines to catch up. Deposits were authorized subsequently, followed by internal transfers and a 30-minute cancel-only period. Following this, spot trading resumed, followed by withdrawals around an hour later.
They repaired the problem by 13:30 UTC and informed users that the platform will be operational again by 14:00 UTC (apart from trailing spot orders).
Trailing stop orders have been temporarily halted. A push message and an email would be sent to those who have open trailing stop orders.
Are things back to normal now?
Users may now cancel orders, make deposits, trade on P2P, lend, redeem, and transfer assets, as well as access all account-related activities. Withdrawals were also restored shortly after the end of the spot trading session.
The technical glitches come parallel with allegations against the company.
The suspension of traditional money transactions coincides with an increasing crackdown on cryptocurrency by US authorities. According to previous reports, the Justice Department is looking into Binance for claims of money laundering and possibly sanctions breaches.
Zhao recently rejected charges in a Forbes piece that Binance, like the defunct exchange FTX, mismanaged consumer assets. According to the paper, Hillman’s assertions that Binance’s record-keeping for wallets and user balances was distinctly made determining the exchange’s solvency problematic.
The final words of relief by the company head.
While Binance strives to provide a 24-hour, 365-day-a-year service, technical glitches do occur on occasion. The organization understands how frightening it might be to learn that deposits, withdrawals, and spot trading have been halted. The standard operating procedure (SOP) is, on the other hand, always immediately executed to assist maintain your money safe. Every trade stoppage is treated as a priority-0, all-hands-on-deck problem that demands the whole team’s complete attention.
Binance is one of the giant names in the world of cryptocurrencies. When issues like these occur, the first concern is the protection of customer cash and the reliable resumption of services. The key to this is openness; they’re here to let people know what happened and why every step of the way, said Binance Chief, rationalizing the technical problems.
Edited by Prakriti Arora