On March 24, Binance experienced significant issues with its spot trading platform, leading to the suspension of all spot trading transactions. Binance CEO Changpeng “CZ” Zhao announced via Twitter that the matching engine had encountered a bug on a trailing stop order.
He assured customers that the exchange was working to resolve the issue and that deposits and withdrawals were paused as a standard operating procedure (SOP) to ensure the safety of funds.
Community members raised questions about why deposits and withdrawals were frozen, and CZ explained that the state of orders in the matching engine could affect available funds for withdrawal in user accounts. However, Binance subsequently completed temporary system maintenance, and all trading activity resumed within two hours.
Binance CZ Provide Updates and Clarifications
CZ kept the community updated throughout the process, posting tweets about the bug and sharing trivia to keep spirits up. He also clarified that the exchange was taking all necessary measures to mitigate any potential losses for traders.
Following the completion of the maintenance, the exchange announced that users would be able to cancel orders, process deposits, trade on P2P, and perform lending, redemptions, asset transfers, and all other account-related functions. Withdrawals would be resumed shortly after spot trading started, and trailing stop orders would be temporarily suspended until further notice.
CZ cautioned traders to re-assess their collateral balances prior to the start of spot trading to mitigate against any price fluctuations that may occur. He also addressed rumors that were spreading in the community about exploiting vulnerabilities on the Binance platform to obtain double deposits during maintenance, emphasizing that these rumors were false.
Binance Chinese Twitter clarified that some people had taken advantage of the situation to spread fear, uncertainty, and doubt (FUD) about the platform. The originators of these rumors claimed to have exploited a vulnerability on the Binance platform to obtain double deposits, but the exchange confirmed that this was not true.
Despite the temporary system maintenance, CZ emphasized that Binance’s commitment to customer service remained unwavering. The company frequently communicated during the issue, with trading halts being all-hands-on-deck issues that required a single focus until full recovery. CZ assured customers that the exchange would continue to prioritize the safety of their funds and work to resolve any issues as soon as possible.
Nevertheless, Binance’s temporary system maintenance caused inconvenience for users, but the company’s swift response and transparent communication with customers helped to ease concerns. The situation also highlighted the importance of taking precautions to mitigate any potential losses during price fluctuations.
Related Reading | Peter Schiff’s Surprising Bow To Bitcoin: A Sign Of Changing Tides?