Binance Resumes BTC Withdrawals After Pause

On Monday, Binance released a statement informing users that the platform had temporarily paused BTC withdrawals, with CEO Changpeng Zhao saying on Twitter that all user funds were “SAFU.” The problem was due to a stuck transaction causing a backlog. It was originally expected to be fixed in about 30 minutes. Minutes later, however, he said the issue was going to take a bit longer to resolve.

Reason Why Binance Halted BTC Withdrawals

Zhao said that the funds are SAFU, referring to the Secure Asset Fund for Users emergency insurance fund that his exchange established four years ago. He further explained that the issue was only impacting the Bitcoin network. Bitcoin remained available to withdraw on other networks like BEP-20, he said.

Binance blamed the suspension on an earlier batch of transactions getting stuck and causing a backlog of Bitcoin network withdrawals. The transactions became stuck because they were submitted to the exchange with low transaction fees, which resulted in the creation of a backlog of Bitcoin withdrawals. However, Binance has now resumed Bitcoin withdrawals after it instituted a "temporary pause"  that lasted several hours.