Why Did Digital Asset Giant Stop Trading?!

At 11:38 UTC on 24th March, the largest crypto asset platform Binance halted its spot trading operations along with deposits and withdrawals. It was reported that this error resulted from a glitch related to the trailing stop loss feature.

After almost an hour, Binance CEO CZ Zhao announced on Twitter that “engine one”, referring to one of the trading engines, was back in operation, and the team was waiting for other engines to catch up.

In less than two hours following the initial announcement, Binance declared that temporary system maintenance was complete and that it was getting ready to restart all trading by 2 PM UTC. Order cancellation, deposit processing, P2P trading, lending, redemption, asset transfers, and all other account-related operations will be available to the user.

Ilya Volkov, CEO of the cryptocurrency loan company Youhodler, concurred that the halt was caused by a technical error and had little impact on cryptocurrency prices.

Cryptocurrency trading is highly volatile, so crypto exchanges are prone to experience downtime. In December, Gemini experienced a seven-hour downtime, while Coinbase was forced to experience an outage as a result of a Super Bowl advertisement last year. A group of Italian investors filed a lawsuit against Binance after the company experienced an outage in November 2021, claiming they had lost “tens of millions” of dollars.

Bitcoin's (BTC) price fell by roughly $700 when the outage was announced, but it had recovered to about $28,000 by the time Binance trade resumed at 14:00 UTC.

Changpeng Zhao founded Binance in 2017. It was initially based in China before moving its headquarters in reaction to restrictions placed on cryptocurrency trading by the Chinese government.

In recent years, the exchange has experienced a number of difficulties, including inquiries by the US Department of Justice and Internal Revenue Service about claims of money laundering and tax charges.

Binance was also given the mandate by the UK's Financial Conduct Authority to end all regulated operations there in June 2021.

Moreover, Binance disclosed client information to the Russian authorities in 2021, causing customer security and privacy issues.

Just recently, it was revealed that Binance had been found to be in violation of China's cryptocurrency ban, with workers having assisted mainland customers in fabricating fake paperwork to satisfy KYC/AML criteria.

The incident serves as a reminder of the possible risks and complexity involved with the constantly changing world of cryptocurrencies while the exchange attempts to fix the issue. Therefore, it is always crucial to conduct a thorough research regarding any trading platform to avoid future complications. Delay no more with our free WikiFX mobile application or visit www.wikifx.com.