Binance has temporarily stopped withdrawing bitcoins amid a cryptocurrency crash

The world’s largest cryptocurrency exchange has temporarily stopped drawing bitcoins. REUTERS / Dado Ruvić / Illustration

Binance on Monday stopped withdrawing bitcoin hours after cryptocurrency creditor Celsius blocked customers from withdrawing funds from their platform.in movements that sparked widespread sales across the digital asset market and led to the most traded cryptocurrency falling to its lowest level since late 2020. Shortly before 1pm in Buenos Aires, the company announced that the opportunity the download was restored, although he admitted delays.

The world’s largest cryptocurrency exchange stopped withdrawing bitcoins from customers on Monday afternoon. The break came after Celsius, another major player in cryptocurrency that allows consumers to borrow their tokens for high returns, stopped buybacks due to “extreme market conditions”.

The cryptocurrency market has been shaken in recent weeks amid a wider flight of speculative assets caused by the sharp tightening of monetary policy by global central banks in response to intense inflation.

“Withdrawals in the Bitcoin Network (BTC) were suspended on June 13, 2022 at 11:43:43 (UTC)” (Binance)

El Bitcoin, the world’s most traded cryptocurrency fell nearly 20% from Friday to below $ 23,000 this morning, its lowest level since December 2020, according to CryptoCompare. Meanwhile, the market value of the broader cryptocurrency market fell from a peak of $ 3.2 trillion in November to about $ 1 trillion on Monday.

Binance, the world’s largest cryptocurrency exchange by volume, said it had temporarily stopped downloading bitcoins from its platform due to a “stuck transaction”. The company, which handled $ 1.2 million in spot transactions in cryptocurrencies and derivatives last month, could not immediately provide further details.

Suspension of extractions is “temporary”said the company.

“Withdrawals in the Bitcoin Network (BTC) were suspended on June 13, 2022 at 11:43:43 (UTC). The withdrawals of BTC in other networks (BEP20 and ERC20) remain open and function normally “, the exchange announced through its social networks.

“An earlier batch of transactions stopped due to low transaction fees and thus led to a backlog of online withdrawals,” the statement added.

“The Binance team is working on a solution for the resumption of withdrawals in the Bitcoin network (BTC) soon. Binance will reopen withdrawals in this network once the withdrawal system stabilizes and users are notified in a new announcement, “they added.

“Previous batch of transactions delayed due to low transaction fees and thus led to lags behind network withdrawals” (Binance)

Shortly before 13:00 Argentine time, the company announced that withdrawals are possible again.

“Withdrawals on the Bitcoin Network (BTC) have already resumed”Binance announced. “We are still working on processing upcoming Bitcoin withdrawals (BTC) and it is believed that this will be completed in the next few hours. Please note that upcoming Bitcoin withdrawals (BTC) will be rejected. In this case, users will have to resubmit their download requests. “he added.

Celsius is one of the largest players in the decentralized financial market, giving users the opportunity to borrow their tokens as collateral for other crypto projects. In exchange for borrowing their tokens, merchants can earn an annual return of up to 17%.

Celsius, which has offices in the United States, the United Kingdom and Lithuania, said the freeze on payments benefits our entire community to stabilize liquidity and operations, while taking steps to preserve and protect assets.

Market sentiment towards these high-risk projects cooled sharply after terra and luna tokens fell in a matter of days. The value of assets deposited in the Celsius platform fell to less than $ 12 billion as of May 17, down from more than $ 24 billion at the end of December.

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