Binance US, the American division of the world’s largest cryptocurrency exchange, Binance, has responded to speculations surrounding insufficient Bitcoin Cash (BCH) reserves on its platform.
In a recent statement, the exchange clarified that it maintains a 1:1 reserve for every BCH token deposited or withdrawn by customers.
The temporary suspension of BCH withdrawals was attributed to a technical issue, which has now been successfully resolved.
Several reports from users indicated that BCH withdrawals on Binance US were temporarily halted. Binance US acknowledged the issue and explained that it stemmed from a problem within its deposit transfer system.
This system is responsible for automatically transferring funds from customers’ individual deposit wallets to the platform’s hot and cold wallets for enhanced security measures.
Specifically, the technical issue affected BCH deposits, resulting in their inability to be transferred as usual. Consequently, there was a temporary shortage of BCH in the platform’s hot wallet.
However, Binance US assured its users that their assets were safe and secure despite the incident, emphasizing that no amount of fear, uncertainty, and doubt (FUD) could alter that fact.
Binance US’s technical team diligently worked throughout the weekend to address and resolve the BCH deposit transfer problem.
Their efforts were successful, and normal deposit and withdrawal flows for BCH across all networks have been restored. It is worth noting that the resolution process took approximately three days.