Binance, the world’s largest cryptocurrency exchange, temporarily halted its Bitcoin withdrawal service twice in 12 hours on Sunday night and Monday morning in Hong Kong.
However, the exchange resumed the service around Monday noon after replacing transactions with higher fees.
The exchange tweeted that the set fees did not anticipate the recent surge in Bitcoin network gas fees. As a result, Binance had to replace the pending transactions with higher fees to get them picked up by mining pools.
Binance further added that it had adjusted its fees to prevent a recurrence of a similar situation in the future.
The incident occurred when Binance encountered congestion issues while processing a large volume of pending transactions.
This caused the exchange to halt Bitcoin withdrawals temporarily. However, Binance resumed the service after about an hour and a half.
CryptoQuant, a data analytics platform, recorded the largest daily volume of Bitcoin outflow from Binance on Sunday. The platform tracked a total outflow of 188,281 Bitcoins, indicating a significant movement of cryptocurrencies from the exchange.
Despite the temporary halts, Binance’s quick response to the situation has reassured its users that the exchange is proactively monitoring on-chain activity and adjusting accordingly if needed. Binance’s timely actions have prevented further inconvenience to its customers.
