Coin Security Suspends Bitcoin Withdrawals Twice in One Day Due to Huge Coin Withdrawal Transactions

At 21:13 pm EST on May 7, the world's largest cryptocurrency exchange Coin (Binance) said through its official account on the social media platform that it had suspended the extraction of bitcoin (Bitcoin, btc for short) on its platform due to the large volume of transactions waiting to be completed, and that the team was working on a solution and would resume bitcoin extraction as soon as possible.

At 22:39, Coin continues to tweet that there are still a large number of bitcoin extraction transactions that have not been completed due to the company's previously set fees not taking into account the recent surge factor of gas fees on the bitcoin network, and the team is still working to speed up the confirmation of all pending transactions.

A virtual currency observer analyzed to Punch News that every data interaction on the blockchain requires the payment of gas fees, which are paid to miners or pledgers. When users withdraw coins, the platform will precharge a fixed withdrawal fee, such as 0.0005btc per pen, and as long as the actual withdrawal fee is similar to this, the coins can be withdrawn normally. "But if the blockchain is congested, the coin withdrawal fee will increase significantly. This involves the rules of blockchain operation. The blockchain is limited for blocks in order to ensure its security. The data for each transaction is about a few hundred bytes, and it needs to be written into the blockchain for each transaction. Bitcoin is a block out every ten minutes or so, and the capacity of a block is more than 1M, so if you do the math, each block can only accommodate a few thousand transactions."

He said that when a large number of transactions occur, miners choose whose transactions are packaged first, and the criteria for selection is that whoever offers a high gas fee will have their transactions packaged first, and other transactions will have to continue to wait. "It's like a bidding process. If the bid is high, the transaction will be confirmed quickly, and those who bid low will have to wait slowly. Recently, because of the congestion on the btc network, the gas fee is very high and will far exceed the pre-recovery fee previously set by the exchange. Of course, the exchange can still pay the gas fee according to the original pre-set fee, but the consequence is that there may have been no miners to pack your transactions, and you can only wait indefinitely."

Punch News noted that this was not the first time that Coin On suspended bitcoin withdrawals that day. At 11:07 p.m. EST on May 7, Coin On said through its official account on the aforementioned social media platform that it had suspended bitcoin withdrawal services due to congestion problems on the bitcoin network. "The team is currently fixing the issue until the network is stable and will resume bitcoin withdrawals as soon as possible." According to a tweet from Coinan's response, bitcoin withdrawal services were briefly resumed that afternoon, but faced the same problem again by late afternoon.

As of press time, CoinSec has not provided any more details on the aforementioned issue, and CoinSec founder Zhao Changpeng has not tweeted a response.

It is worth noting that Cryptocurrency had just previously suspended spot trading.

In the morning of March 24, local time, Cryptocurrency (Binance) said on its social media platform, "We are aware of an issue affecting Cryptocurrency's spot trading, all spot trading is currently suspended and we will resolve the issue as soon as possible." Cryptocurrency CEO Zhao Changpeng then responded with several tweets on the social media platform, saying that initial analysis indicated that the matching engine was experiencing a glitch in tracking stop orders (trailing stop orders) and resumed in about 30 to 120 minutes. "A little trivia while we wait. The term troubleshooting (Debugging) is derived from the 1940s, when 'chip' circuits were still using large transistors and (because of the warm weather) insects often entered causing short circuits. Engineers had to periodically remove the bugs (bugs) and thus troubleshoot (debugging)."

Two hours later, Binance released an announcement on its official website that it had completed temporary system maintenance and would resume all trading activity at 2 p.m. UTC on March 24.

In addition, Binance and its founder Zhao Changpeng were also charged by the CFTC in late March with illegally operating a digital asset derivatives exchange. Zhao Changpeng later responded via the official CoinA blog that the CFTC filed an unexpected and disappointing civil lawsuit, despite CoinA's more than two years of cooperation with the CFTC. "Upon preliminary review, the complaint appears to be an incomplete recitation of the facts, and we disagree with the allegations of the complaint on many issues."