The exchange stated that technical issues were the reason for suspending withdrawals across multiple networks this morning.
On Wednesday morning, cryptocurrency exchange Binance declared that withdrawals would be temporarily suspended. According to Binance, the suspension was caused by a technical problem on the part of a third party provider.
The exchange tweeted that the incident occurred at 7:00 AM UTC and was solved by the team in less than an hour.
Binance also assured customers that funds were still available despite the ban. This acronym stands for Secure Asset Fund for Users, the exchange’s monetary account. Binance created the fund in 2018 to compensate customers for hacking on the exchange. It holds 10% of all trading commissions.
Twitter users asked questions about the fund and the exchange quickly clarified its purpose and estimated value at $1 billion.
This is just days after Binance seized and frozen nearly $450,000 of the stolen assets in the Curve Finance hack. Due to network congestion, Binance also stopped Bitcoin ( TC_) withdrawals in June. Binance is the largest cryptocurrency exchange in the world and handles almost 3.224 million transactions each day.
Major turbulence has been caused by volatile market conditions for crypto companies. Although it claimed market instability, the crypto exchange Celsius stopped withdrawals in June. It declared bankruptcy shortly after.
Coinbase has announced that it will stop deposits and withdrawals Ethereum ( Ethereum and ERC-20 tokens) during the forthcoming Ethereum Merge. This Merge is scheduled to take place in September.
Some hodlers are having to reexamine their storage locations for digital goods due to market volatility. Many are looking to hardware wallets for the solution. One Twitter user responded with:
A July report stated that the global wallet market should surpass the global exchange market. The exchange market is expected to reach $675 million in 2028, while the anticipated value of the hardware wallet industry is $1.1 billion by 2027.