Binance paused bitcoin withdrawals for a few hours on Monday “due to a stuck transaction causing a backlog”; the company says BTC withdrawals have since resumed

CEO Changpeng Zhao attributed the issue to a “stuck transaction,” and promised a quick fix. Source: @cz_binance , @binance , and @cz_binance .

CoinDesk 2022-06-14 Brandy Betz

Context & Ripple Effects

The interruption followed Binance's earlier suspension of LUNA and UST withdrawals amid pending-withdrawal volume and network congestion. It puts BTC transfers in the same operational-risk frame: customers' ability to move assets depends on the exchange clearing transaction queues.

Later Binance BTC pauses tied to higher transaction fees and heavy volume show that withdrawal availability can be constrained by both internal processing backlogs and changing network conditions.

First-order effects

BTC customers regain access to Binance withdrawals after the company clears the transaction backlog, while Binance's operations team must resolve the stuck transaction and restore queue processing.

Second-order effects

Repeated withdrawal interruptions make Binance's handling of fees, volume, and transaction routing a customer-facing reliability issue rather than a back-office concern.
Other exchanges have an incentive to differentiate on withdrawal continuity when network congestion raises the odds that customers cannot promptly move BTC.

Third-order effects

If congestion-related pauses recur across assets, crypto exchanges will compete increasingly on the resilience and transparency of their withdrawal infrastructure, not only trading liquidity.

The trend: Centralized crypto exchanges are being tested on whether their off-chain customer balances can translate into reliable on-chain withdrawals during processing and network stress.

Discussion

@cz_binance @cz_binance on x
Temporary pause of $BTC withdrawals on #Binance due to a stuck transaction causing a backlog. Should be fixed in ~30 minutes. Will update. Funds are SAFU.
@binance @binance on x
Bitcoin network withdrawals have now resumed on #Binance. https://www.binance.com/...
@cz_binance @cz_binance on x
This is only impacting the Bitcoin network. You can still withdraw Bitcoin on other networks like BEP-20. Likely this is going to take a bit longer to fix than my initial estimate. More updates soon. Thanks for your patience and understanding🙏
@fatmanterra FatMan on x
Not sure why no one has mentioned this, but Bitcoin doesn't work like that - it's not like Ethereum where transactions require an iterative nonce - you can spend inputs even if a transaction from the same address is stuck in the mempool. Some additional clarity would be nice... h…
@binance @binance on x
A batch of $BTC transactions got stuck due to low TX fees, resulting in a backlog of BTC network withdrawals. As a result, withdrawals on the Bitcoin network are temporarily suspended on Binance. BTC withdrawals on other networks (BEP20 & ERC20) remain open as normal.
@kimdotcom Kim Dotcom on x
That's not what Satoshi intended: Long transaction times Small blocks High fees Looks like $BTC under @blockstream management became the very banking system that Satoshi aimed to disrupt. After the big crash go with Satoshi's dream, P2P electronic cash: https://whybitcoincash.com…
@dimartinobooth Danielle DiMartino Booth on x
“Binance is the world's largest crypto exchange. The company handles spot trading volumes of more than $14 billion and nearly $50 billion in derivatives volume in a single day.” ht ⁦@GoldTelegraph_⁩ https://www.cnbc.com/...
@binance @binance on x
Our team is working on a solution to resume withdrawals as soon as possible. Stay tuned for further updates and timelines. We apologise for any inconvenience caused. More info ⤵️ https://www.binance.com/...
@paleofuture Matt Novak on x
3.5 hours. Identical to their “scheduled maintenance” excuse. Except this time it was “stuck” or whatever. https://twitter.com/...
@molly0xfff Molly White on x
guess the guy with the drain snake must have been at another job https://twitter.com/...
@banalplay Lena on x
“Homer are you just holding on to the transaction?” https://twitter.com/...
@rreverser @rreverser on x
Imagine this happening on Visa or MasterCard network. “Sorry, your payments are paused because there's a stuck transaction somewhere.” https://twitter.com/...
@larsknoll Lars Knoll on x
As expected. Numbers go down and suddenly there's a problem with withdrawals. https://twitter.com/...
@grady_booch Grady Booch on x
“A stuck transaction” https://t.co/fJqQLVBKxw
@alpacasw @alpacasw on x
CZ, I think you mean Bitcoin IOUs. https://twitter.com/...
@lounes_kmt @lounes_kmt on x
Bitcoin on other networks isn't Bitcoin. https://twitter.com/...
@teroterotero Tero Kuittinen on x
Why the heck did they float that 30 minute time frame? It's a clown show https://twitter.com/...
@oliviasolon Olivia Solon on x
Hmm. Binance has a history of technical glitches that prevented customers from cashing out during price crashes https://www.nbcnews.com/... https://twitter.com/...
@bradydale Brady Dale on x
wait, what? a stuck transaction? does that sound crazy? https://www.coindesk.com/...
@tante @tante on x
Binance is also know for having “planned maintenance” whenever there is a bank run. Such bad luck with the plans. Always. https://twitter.com/...
@ben_mckenzie Ben McKenzie on x
Like clockwork https://twitter.com/...
@paleofuture Matt Novak on x
Bank teller: We're sorry, we can't give you access to any of your money. Me: Why not? Bank teller: um, it's stuck. The money is stuck. Please wait, um, 30 minutes. For it to get unstuck.
@paleofuture Matt Novak on x
Did I say 30 minutes? I meant over an hour and counting... https://twitter.com/...
@davidgerard @davidgerard on x
this is fine https://twitter.com/...
@paleofuture Matt Novak on x
It's been almost two hours. When they've previously had unscheduled “scheduled maintenance” to halt withdrawals it's usually 3-5 hours. Will be interesting to see if they get it “unstuck” in that timeframe.
@paleofuture Matt Novak on x
“stuck transaction” https://twitter.com/...
@binance @binance on x
If you're withdrawing #Bitcoin using another network, follow these steps: Select $BTC in your spot wallet > click withdraw > send via crypto network > enter the address you're sending to > select network (BEP20 or ERC20) > confirm withdrawal. https://twitter.com/...
@ahcastor Amy Castor on x
It's been 2 hours. This is how we prevent the price of BTC from going into free fall https://twitter.com/...
@celsiusnetwork Celsius on x
.@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://link.medium.com/...
@mashinsky Alex Mashinsky on x
@mdudas ... Mike do you know even one person who has a problem withdrawing from Celsius?, why spread FUD and misinformation. If you are paid for this then let everyone know you are picking sides otherwise our job is to fight Tradfi together...
@nexo @nexo on x
All Nexo products are operating normally - Borrow, Earn, Exchange, the Nexo Card. As always - deposits and withdrawals are processed instantly so that all of you can make the necessary arrangements in this latest downturn in the markets. 1/
@jonwu_ @jonwu_ on x
Celsius is one of the largest centralized gateways to crypto. It raised $864m of venture capital and at one point custodied over $3 billion of funds for 1m+ customers. As of today, it appears insolvent, and it's taking the whole crypto market with it. The Celsius Thread: 👇
@wassielawyer @wassielawyer on x
1/ Ok just some clarifications because people instantly become insolvency practitioners / lawyers whenever a platform is experiencing difficulties to maximize engagement farming. Now @CelsiusNetwork is clearly insolvent. The question is what sort of insolvency are they in?
@lessin @lessin on x
Defi and NFTs are not “scams” as tech, but no more than theoretical shells til they are meaningfully connected to real world finance https://twitter.com/...
@dadkins_ @dadkins_ on x
live look at celsius risk department https://twitter.com/...
@blockfizac Zac Prince on x
This morning we announced that after taking significant time to plan and consider, we are reducing our headcount by roughly 20%. This is not a decision we take lightly and is one that brings us great sadness.
@mikeburgersburg @mikeburgersburg on x
🚨 Celsius Network has 17,919 $WBTC leveraged in Maker protocol. This position faces liquidation at $22,584/$BTC. $278 mil $DAI debt, making it the largest individual debt position on the protocol. https://twitter.com/...
@bgarlinghouse Brad Garlinghouse on x
Days like today are never what you hope to see, esp. in an industry w/ as much incredible talent as crypto. If you recently joined the industry and haven't seen a downturn like this, know that this too shall pass (advice from someone who's seen a few downturns over the years).
@lawmaster @lawmaster on x
In the interest of transparency, I am releasing my database of all wallets that I believe belong to Celsius. Currently, there is still roughly $1.5billion sitting on them. Also please keep in mind that on-chain labeling is not an exact science. I could have made some mistakes htt…
@nexo @nexo on x
Nexo is in а solid liquidity and equity position to readily acquire any remaining qualifying assets of Celsius, mainly their collateralized loan portfolio. We are putting together an offer to Celsius to that accord and will communicate it publicly. 5/
@deezefi Dee Ze on x
losers and bigger losers 🥴 https://twitter.com/...
@schwarz Jon Schwarz on x
If you bought $1,000 of bitcoin the day Matt Damon's “Fortune favors the brave!” commercial came out, it would now be worth $375 https://twitter.com/...
@kris @kris on x
Lot's of questions and speculation flying around regarding what https://crypto.com/ is doing during the market downturn. My thoughts below 🧵
@saylor Michael Saylor on x
NewProfilePic https://twitter.com/...
@jackniewold @jackniewold on x
THE CELSIUS BLOWUP, EXPLAINED. Huge sectors of crypto are imploding, and crypto unicorns might be coming down with it. Luna was first, but now $10b giant Celsius is facing insolvency and even bankruptcy. Let's dive in:
@levie Aaron Levie on x
I refuse to believe Matt Damon was wrong about investing advice.
@kevinsekniqi @kevinsekniqi on x
All Avalanche on-chain performance and reliability metrics have remained very high despite all the market turbulence. This includes all subnets as well. Very thankful for this.
@kadhim @kadhim on x
Just 8 months ago Canada's 2nd largest pension fund CDPQ and Westcap were touting the due diligence they had done before investing in Celsius “We are very careful . . . our DD process is very serious” Now Celsius has stopped withdrawals, bringing the crypto markets down with it h…
@tracyalloway Tracy Alloway on x
Turns out avocados were the real inflation hedge all along. https://twitter.com/...
@sassal0x @sassal0x on x
https://twitter.com/...
@ryansadams Ryan Sξan Adams on x
Celsius isn't DeFi.
@tether_to @tether_to on x
Celsius Feels Impact of Market Volatility, Tether Reserves Hold Strong https://tether.to/...
@blockfizac Zac Prince on x
All products and services @BlockFi continue to operate normally, including loans, interest earning, trading, credit card and deposits / withdrawals. We have zero stETH exposure and exited the principal positions we had in GBTC last fall.
@saylor Michael Saylor⚡️ on x
In #Bitcoin We Trust.
@zebulgar @zebulgar on x
maybe now 25 year olds will finally build things in the real world now rather than trading around jpgs of donkeys
@ryan_browne_ Ryan Browne on x
MicroStrategy's CFO explained on an earnings call in May that, if bitcoin were to fall below $21,000, it would be faced with what's called a “margin call,” where it's effectively forced to cough up more bitcoin as collateral for the loan. https://seekingalpha.com/... https://twit…
@cryptodomf @cryptodomf on x
A year or so ago I had some $BTC and $ETH in Celsius as I saw it as way to earn yield on those coins I changed my plan to all-in on $ADA and $ERG and everything is now self-custodial Bear market is exposing weakness especially in centralised systems 👀 https://twitter.com/...
@ncweaver Nicholas Weaver on x
Microstrategy is just the tip of the iceberg at $200M. The big one is the miners. Over the past year power bills were probably ~$10B+. And I suspect most miners borrowed against the Bitcoin rather than sell it (because the market is too thin).
@riccardotrezzi @riccardotrezzi on x
Can anyone tell this guy that “hope is not a strategy”? (He's down.. ehm.. 1bn US$ on his $BTC position. What-a-legend! Source: https://www.coindesk.com/...) https://twitter.com/...
@raoulgmi Raoul Pal on x
Remember December 2018? This is exactly what it felt like. Rising rates, oil at the highs, rising dollar, rising inflation, QT and markets breaking everywhere. Then the economy rolled over...
@alex @alex on x
BAYC floor under $100k USD, though the drop in ETH is lower
@claritytoast Nate Anderson on x
Celsius CEO the day before the collapse https://twitter.com/...
@reuben_wu Reuben Wu on x
gmorning https://twitter.com/...
@eatinginmycar Cari on x
lol https://twitter.com/... https://twitter.com/...
@richard_normal @richard_normal on x
im watching a popular crypto guy on yt right now and hes saying stuff like “why are we worried about the price of bitcoin? you will never find peace in money. i encourage you to look to christ for that.”
@mdudas Mike Daodas on x
global crypto market cap back to $1 trillion in aggregate, an absolute incredible long term buy opportunity in near term, however, hard to recommend anything specific, feels like max pain still ahead
@truthcoin Paul Sztorc on x
Of all the maxis I know and follow (including myself), none mentioned Celsius ever, as far as I can recall I'd never heard of it until today But yes, sure: 1. not your keys not your coins 2. 20% ROI on debt always implies large default risk https://twitter.com/...
@thehowie @thehowie on x
“Meanwhile, a crypto lending company called Celsius has paused withdrawals for its customers, sparking fears of contagion into the broader market.” Decentralized finance, except when a bank run happens and someone else's risk becomes your own. https://www.cnbc.com/...
@kantrowitz Alex Kantrowitz on x
Bitcoin is down 65% from November. The institutional money has to be getting out. Where's the bottom?
@nelson Nelson Minar on x
The Bitcoin headlines today are hilarious. “Bitcoin falls below $25,000”. Twenty minutes later, “Bitcoin below $24,000”. It's at $22,836 now but don't worry, the knives will stop falling eventually. Maybe?
@0x_capital @0x_capital on x
A moment of silence. gm https://twitter.com/...
@sandofsky Ben Sandofsky on x
On October 28, 2021, Matt Damon said, “Fortune Favors the Brave.” If you went out and bought a leading cryptocurrency, today you're down 73% https://twitter.com/...
@evan_ss6 @evan_ss6 on x
Drawdowns from ATH: $ES: 21.5% $NQ: 32% $BTC: 66.5% $ETH: 75.2% $SOL: 89.7% $AVAX: 89.9% $LUNA: 100%
@larryjamieson_ @larryjamieson_ on x
The vibes are off - sell it all, today fr fr https://twitter.com/...
@pwnallthethings @pwnallthethings on x
Who could have guessed that borrowing billions against magic inflation-hedging assets that can only go up would eventually lead to a big fiscal implosion when the magic assets turn out to not be inflation-hedging and stop going up
@thepacketrat @thepacketrat on x
Oh https://twitter.com/...
@jacqmelinek Jacquelyn Melinek on x
the global crypto market cap has dipped below $1 trillion for the first time since Jan 2021
@ncweaver Nicholas Weaver on x
When a Ponzi scheme is going to collapse, everyone thinks they can run to the exit. Most are wrong. Celsius was always a ponzi scheme. Well.... OK, it just invested in Ponzi schemes in an entire space that is a self-assembled Ponzi scheme. https://www.ft.com/...
@litcapital @litcapital on x
Bored Ape holders in 2021 vs. 2022 https://twitter.com/...
@alexisohanian @alexisohanian on x
GM. It's a great day to build.
@francispouliot_ @francispouliot_ on x
“Celsius last year raised $400mn in an equity funding round led by Caisse de dépôt et placement du Québec, Canada's second-largest pension fund” On the bright side, the scam exit liquidity was from the pension of mostly government employees. https://www.ft.com/...
@dougboneparth Douglas A. Boneparth on x
You can't spell crypto without cry. 😢
@saucenaopls @saucenaopls on x
Technical issues that only seem to occur when markets are crashing and the only people that can comment on the tweet are unironically begging for market manipulation by blocking people from liquidating their BTC lol Please don't ever invest in anything crypto. https://twitter.com…
@frances_coppola @frances_coppola on x
Funny how there just happen to be technical reasons to suspend withdrawals when an asset is selling off, isn't it? https://twitter.com/...
@ercwl Eric Wall on x
Just bought 32 ETH for $38k Seemed cheap
@refsrc Manish Singh on x
Top performing tokens of the last 24 hours (among the 100 most valuable projects / firms with market cap) are all just stablecoins. https://twitter.com/...
@twobitidiot @twobitidiot on x
It's like the March 2020 macro crash, but with a side of 2018 ICO unwind, 2014 scandals and bankruptcies, and new real regulatory risks. https://twitter.com/...
@howardlindzon @howardlindzon on x
bitcoin now up just 20 percent from 2017 highs. it's sad , hilarious and so stupid how much time people have devoted to talking about the price and yet here we are

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