Exchange – Is it credible that the real reason Binance paused Bitcoin withdrawals was a “trading outage”?
In the question you linked, the phrase “transaction abort” is commonly used by people who are unaware of the impact the chosen transaction fees have on confirmation times.
As we all know, this kind of “deal break” cannot delay someone else’s transaction.
According to a Coindesk article:
Cryptocurrency exchange Binance explained the cause of temporary withdrawal issues with Bitcoin in a series of tweets on Monday, saying the issue stemmed from repairs performed to fix a small hardware error.
“We are repairing several minor hardware errors in our wallet integration node earlier today, which resulted in previous pending transactions being broadcast to the network after the node recovered,” Binance wrote.
“This pending consolidated transaction has a low gas fee, which has resulted in later withdrawal transactions pointing to the pending consolidated UTXO being halted and unable to be processed successfully,” the company said. (UTXO stands for unspent transaction output.)
To solve this problem, Binance “had to change its logic to only take successful UTXOs from consolidated transactions or successful withdrawal transactions. “This fix will help prevent the same issue from happening again.”
Essentially, the problem was internal to Binance. It’s a combination of a hardware issue and a bug in the internal software. The transaction constructed to fulfill the customer’s request was dependent on an integrated transaction that was affected by the hardware error repair.
The mention of “gas fees” seems a bit odd to me. That probably means lower transaction fees. However, I think it’s clear that this issue is simply not the type of “transaction abort” that regular Bitcoin users commonly refer to. This was not simply an external problem of Bitcoin blockchain congestion or fee increases. The fault was entirely internal to Binance.
