• Binance, the world’s largest cryptocurrency exchange by daily trading volume, has temporarily suspended all online spot trading on its platform due to a bug.
• Bitcoin prices dropped $700 before partially recovering and leaving traders anxious about the situation.
• Binance CEO Changpeng Zhao provided reassurance and updates about the situation and noted that Engine 1 was back online but more time was needed for reconciliations and for other engines to catch up.
Crypto Giant Binance Suspends Spot Trading
Binance, the world’s largest cryptocurrency exchange by daily trading volume, temporarily suspended all online spot trading on its platform after discovering a bug in its matching engine. This caused an unexpected disruption in the digital asset market which resulted in Bitcoin prices dropping $700 before partially recovering from the decline.
Anxious Traders
The suspension left traders and investors anxious as they questioned the stability of the platform and safety of their funds. Binance CEO Changpeng Zhao (also known as CZ) quickly stepped in to provide reassurance and clarification with an update tweet stating that an unusual bug had been found in a trailing stop order and that it was being addressed.
Recovery Process
The recovery process continued with CZ providing further updates noting that Engine 1 was back online but more time was needed for reconciliations and for other engines to catch up. CZ shared that they were unlucky as this bug happened 57 minutes into an hourly snapshot which prolonged the reconciliation process.
Standard Operating Procedure
As part of standard operating procedure (SOP), deposits & withdrawals were paused during this time while funds remained safe according to CZ’s tweets (#SAFU).
Latest In A Series Of Problems For Binance
This incident marks yet another problem for Binance who founded back in 2017 by Changpeng Zhao who has been actively responding to questions from users via Twitter since then.