​Binance reports processing all BTC withdrawal transactions

What’s new? Binance has reported processing all pending BTC withdrawal transactions. Previously, the crypto exchange twice suspended these transactions, citing network congestion. According to the platform’s representatives’ Twitter statements, the team is already implementing solutions to ensure that the suspended withdrawal incidents do not happen again. One option being considered is to allow withdrawals through the Lightning Network protocol.

All pending $BTC withdrawal transactions have now been processed.Once again, thank you for your patience and our team is already implementing solutions to make sure this doesn't happen again. https://t.co/tY7S8R3U9d — Binance (@binance) May 8, 2023

The Lightning Network, a Layer 2 (L2) payment protocol, is used to speed up transactions on the Bitcoin network and address scalability issues. It was implemented into the mainnet in 2018.

How did events develop? On May 7, Binance temporarily suspended bitcoin withdrawals due to network congestion.

We've temporarily closed $BTC withdrawals as the #Bitcoin network is experiencing a congestion issue.Our team is currently working on a fix until the network is stabilized and will reopen $BTC withdrawals as soon as possible.Rest assured, funds are SAFU. — Binance (@binance) May 7, 2023

After withdrawal was restored, the exchange announced the suspension again, explaining its decision by the large number of pending transactions on the network. Users were assured that the funds were completely safe.

We've temporarily closed #BTC withdrawals due to the large volume of pending transactions.Our team is currently working on a fix and will reopen $BTC withdrawals as soon as possible.Rest assured, funds are SAFU. — Binance (@binance) May 8, 2023

On May 8, Binance reported that a number of analytical services showed a large amount of funds outflow from the exchange. Thus, CryptoQuant analysts reported an outflow of 147 507 BTC on May 7 (more than $4 billion). According to Binance representatives, it was actually due to the movement of funds between the exchange’s hot and cold wallets due to address adjustments on the Bitcoin network.

We’re aware that some data are showing a large volume of outflows from #Binance. This ‘outflow’ are actually movements between Binance hot and cold wallets due to the BTC address adjustments. — Binance (@binance) May 8, 2023

In this, Binance CEO Changpeng Zhao attributed the 18-fold increase in fees on the BTC network to the panic (FUD) around the asset’s withdrawal problems. In his opinion, there were no objective reasons for the increase.

4. There are some FUD about BTC withdrawal issues. Here is why. Bitcoin network fees are fluctuating, 18x in a month. 🤷‍♂️🙏(the screenshot is a google translate version) pic.twitter.com/iYcEx22xMJ — CZ 🔶 Binance (@cz_binance) May 8, 2023

As of May 8, 13:45 UTC, there are 447 643 unconfirmed transactions on the Bitcoin network. The average fee per transaction is $21,6. Btc/usdt is trading at $27 932, down by 3,61% in 24 hours (Binance’s data).

On May 5, the media reported that the Criminal Division and the Department of Homeland Security of the US Department of Justice are investigating possible violations of sanctions against Russia by Binance. The exchange is also in talks with the ministry regarding past allegations against the exchange related to the circumvention of sanctions against Iran.