Binance crypto exchange announced on April 13th that Ethereum withdrawal requests might take a few weeks to be processed.
The delay comes just a day after the Shapella upgrade went live on the Ethereum mainnet, allowing ETH validators to withdraw their locked funds. Binance disclosed its need to set a daily redemption quota for each user due to the Ethereum network’s processing limitations.
Binance, the world’s largest crypto exchange by trading volume, will allow its users to redeem their locked ETH funds from April 19th. However, the exchange also revealed that unstaking requests may take between 15 days to several weeks to be completed.
The duration of the request completion is determined by the total amount of ETH withdrawal requests by staking participants and the Ethereum network’s processing capacity.
Binance emphasized that BETH tokens locked in pending withdrawal requests would not accrue any ETH 2.0 staking rewards, and users cannot cancel their withdrawal requests once submitted.
According to rated.network, there are over 400,000 partial withdrawal requests and nearly 30,000 full withdrawal requests. Notably, a significant portion of these withdrawals are forced as Kraken, a US-based crypto exchange, had to discontinue its staking service following a $30 million settlement with the SEC.
On April 12th, the highly-anticipated Shapella upgrade launched on the Ethereum mainnet. The hard fork modified the execution layer (Shanghai) and the consensus layer (Capella) of the network, enabling ETH validators to withdraw their staked funds. However, Binance’s announcement of delayed ETH withdrawal requests highlights the Ethereum network’s processing limitations.