Binance cryptocurrency exchange has announced that it is solving the problem of withdrawing funds from customers affected by a failure with old Dogecoin (DOGE) transactions. But it will take about another week. Thus, the company released a statement when Elon Musk drew attention to the incident.
On November 10, as a result of a software update failure, Binance re-conducted an unknown number of user transactions with DOGE made several years ago. After the funds left the exchange’s cold wallet for third-party accounts, the platform demanded the senders of the initial transactions to compensate for the damage at the current exchange rate and blocked their balances.
Furthermore, Musk drew attention to the incident. On November 23, the entrepreneur addressed the tweet to the head of Binance, Changpeng “CZ” Zhao.
Disclosing the details of what happened
In response to Musk’s post, the company publicly disclosed the details of what happened. According to Binance, the reason is the technical setup of the wallet for DOGE. It will take “a week or so” for the platform staff to fix the problem. It is assisted by Dogecoin developers. In addition, the incident affected 1,674 customers.
“It’s a long and complex process, but the team is working hard,” the statement says.
In response, the head of Tesla noted that DOGE holders using Binance should be protected from errors that occur through no fault of their own. Zhao himself joined the discussion. Also, he pointed out that Tesla has software failures that threaten the security of its user, attaching a link to The Guardian publication.
Bitcoin fell by 87% within a minute
Recall that previously in October, the price of Bitcoin (BTC) fell by 87% within a minute, on the Binance.US platform. The price drop was due to a software error of one of the institutional clients — its trading algorithm failed.
Binance.US unexpectedly printed a one-minute candle on Oct. 21 that dropped BTC/USD from $65,815 to $8,200, a decrease of 87%. Moreover, the trading volume per minute of the collapse was 579 BTC.
The market recovered almost immediately. Therefore, the incident caused a flurry of criticism towards the company. For example, a popular trader with the nickname Crypto Chase noted that due to the situation, some users lost their positions, stressing that he considers the incident unfair.