Binance has once more temporarily shut off Bitcoin BTC$28,417 withdrawals, blaming a massive backlog of unprocessed withdrawal requests.
On May 8, Binance stated that it had “temporarily” stopped allowing BTC withdrawals due to a “large volume of pending transactions.”
The statement continued that the transactions are currently waiting since the “set fees did not anticipate the recent hype in [Bitcoin] network gas fees.”
The exchange promised that withdrawals for Bitcoin would resume “as soon as possible” and that it was “working on a fix.” The statement said efforts were being made to “accelerate the confirmation of all pending transactions.”
Binance had to briefly halt Bitcoin withdrawals earlier on May 7 due to an alleged overflow of transactions on the blockchain. Over a half-hour later, withdrawals were once again permitted.
Around 400,000 transactions were backed up in the Bitcoin mempool and awaiting processing. As of right now, that has increased to around 485,000, according to mempool.space data.
On the Bitcoin network, transactions “wait” in a mempool until each blockchain node confirms them.
According to statistics from CryptoQuant, Binance had large Bitcoin nett negative outflows on May 7, with over 175,650 BTC worth around $4.95 billion leaving the exchange for the day.
According to data from Cointelegraph, the price of Bitcoin has also decreased by about 3.5% from its weekly high of almost $29,700 on May 6.