Binance Halts Crypto Withdrawals Citing “Large Backlog”

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Binance announced it had paused withdrawals “due to a large backlog.”

Binance Freezes Withdrawals 

Binance is currently stopping customers from withdrawing their crypto assets. 

The leading cryptocurrency exchange announced the update in a tweet Monday, explaining that it had disabled all withdrawals “due to a large backlog.” 

The post added that the team was “working on it with top priority” and apologized for the inconvenience. 

The exchange has experienced similar issues in the past. During periods of peak interest in cryptocurrency, Binance and other centralized exchanges have suffered from overload, often leaving users locked out or unable to withdraw their funds. When the market experienced a major crash on May 19, 2021, Binance, Coinbase and other exchanges temporarily went down, leaving many users unable to access their assets as prices tumbled. Binance was accused of causing traders millions of dollars in losses at the time; the Swiss litigation finance group Liti Capital has since raised $5 million to sue the exchange on behalf of the traders affected. 

In a similar scenario, users of Coinbase and other major exchanges reported outages last week as Shiba Inu soared to all-time highs. Though Binance is yet to elaborate on today’s issue beyond noting “a large backlog,” the rising interest in meme coins like Shiba Inu may explain the update. 

While Binance has halted withdrawals, Coinbase and other centralized exchanges appear to be running as normal. Nonetheless, the latest incident is a reminder of one of crypto’s favorite mantras: not your keys, not your coins. 

Update: The exchange announced that it had resumed crypto withdrawals after approximately 25 minutes, before announcing that it had closed them once again. Withdrawals are still disabled at the time of writing. 

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Coinbase Redoing Infrastructure to Prevent Outages During Peak Times

Coinbase will break apart certain parts of its and app infrastructure in a bid to keep the cryptocurrency exchange from going down during periods of high volume.

During the recent bitcoin bull run, Coinbase has struggled to keep itself up during stretches of heavy volume, leading to snarky comments on Twitter and Reddit that it’s only news when the exchange doesn’t go down during peak periods. Given the exchange has filed preliminary documents for a public listing of the company’s shares, fixing its infrastructure has undoubtedly taken on an even greater urgency. 

According to an updated Jan. 8 post mortem on the Jan. 6-7 outages, Coinbase said it will break its “monolithic” backend into “discrete” parts in order to limit individual parts breaking and taking down the whole system. 

“We are further decomposing our monolithic application server into separate discrete services. This will allow us to have different scaling profiles for different sections of our API surface that receive heterogeneous load,” the exchange said in the blog. “In addition, this will reduce the blast radius if we have issues in any one surface, as it will only affect the APIs or functionality that it is responsible for.”

Coinbase specifically cited record breaking exchange volumes on Jan. 7 that were “easily 6x what had already been an elevated steady-state request rate.”

The exchange said trading and buying was still available during this period, but other dependencies related to the function limited the apps functionality.

In another blog, Coinbase’s customer service desk apologized for “delays in response time,” another source of frequent complaint on the internet. The exchange committed to hiring more team members, rolling out a chat feature with customer support along with being more vocal on major social media accounts.

The two blogs follow a Jan. 12 blog apologizing to UK and EU customers for system outages and trading restrictions.



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