Binance Halts Spot Trading due to Technical Issue

Binance, the world’s largest cryptocurrency exchange, has encountered issues with spot trading on its platform.

The exchange announced via its official Twitter account that all spot trading transactions have been temporarily suspended due to the problem.

The CEO of Binance, Changpeng “CZ” Zhao, later took to Twitter to provide additional information on the matter.

According to CZ, the issue appeared to be a bug with the matching engine, which was discovered on a trailing stop order. He stated that the bug is expected to be fixed within 120 minutes and that deposits and withdrawals have been paused as standard operating procedures.

Initial analysis indicates matching engine encountered a bug on a trailing stop order (a weird one). Recovering. Est 30-120 min ish. Waiting for more precise ETA.

Deposits & withdrawals are paused as a SOP (standard operating procedure). Funds are #SAFU. 🙏 https://t.co/mvtGQ3JlMA

— CZ 🔶 BNB (@cz_binance) March 24, 2023

CZ also reassured traders and investors that their funds were safe, using the hashtag #SAFU.

As the pause in spot trading, deposits, and withdrawals continued, CZ continued to tweet to calm concerned traders and investors. He referenced the need for transistor engineers to physically remove bugs from systems in the 1940s to maintain operations, implying that the issue was a standard occurrence that was being addressed.

A little trivia while we wait. Debugging. In the 1940s, when "chip" circuits still use big transistors. Insects often get in (because it's warm) and short circuit things. Engineers have to periodically remove the bugs, thus debugging.

— CZ 🔶 BNB (@cz_binance) March 24, 2023

CZ also downplayed the issue’s potential impact on the market, stating that prices won’t move much when the biggest exchange halts trading. He further argued that when Binance resumes trading, their deeper order book will bring the price back, causing some trades elsewhere to lose money.

About an hour after Binance publicly announced the issue, the exchange partly restored the issue. CZ announced on Twitter that engine one was back online, but more time was needed to do reconciliations and for other engines to catch up.

Engine 1 is back online. Still need more time to do reconciliations, and for other engines to catch up.

We were a bit unlucky with this bug. Our engines take hourly snapshots. This bug happened 57 min in. So, replay/reconciliation takes a bit longer.

— CZ 🔶 BNB (@cz_binance) March 24, 2023

While the issue appears to be getting resolved, the incident serves as a reminder of the importance of trading on reputable exchanges and diversifying cryptocurrency holdings.

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Andrey Kunev

Reporter at CoinsPress

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