• Binance temporarily halted spot trading due to a matching engine glitch.
• Deposits and withdrawals have been paused as part of their standard operating procedure (SOP).
• The CEO of Binance, Changpeng Zhao, also noted that the platform had achieved 100% uptime in 2022.
Binance Temporarily Halts Spot Trading
Binance, the world’s largest cryptocurrency exchange by trading volume, earlier today, on March 24, temporarily halted spot trading due to a matching engine glitch that disrupted the platform. Bug Detected, Withdrawal And Depositing Halted The CEO of Binance, Changpeng Zhao, popularly known as „CZ,“ said they detected a bug during an analysis of a trailing stop order recovery. As a result, the exchange temporarily had to pause deposits and withdrawals, saying the decision was also part of their standard operating procedure (SOP).
Crypto Spot Trading
Crypto spot traders buy or sell assets without using leverage positions. That means users can directly swap crypto or fiat for other crypto assets and vice versa. Spot trading is distinct from derivatives trading, where traders can open Bitcoin or BNB positions, for example, using leverage or borrowing money from the exchange for a bigger risk.
Bug Identified & Trading Resumed
In response to an inquiry about halting withdrawals, CZ stated that the state of orders in the matching engine directly affects funds available for withdrawal in user accounts because the logic checks with the matching engine as a security procedure before processing withdrawals. After identifying the issue with Engine 1, Binance restarted it. However, the reconciliations and engine sync-ups would require time, as the bug occurred 57 minutes after the hourly snapshots. The Binance CEO further noted that the platform had achieved 100% uptime in 2022. In the future,the Binance team will run pre-trading tests. Even so depositing would be enabled followed by internal transfers then a 30 min „cancel-only period“ would be permitted afterward crypto trading would resume.
Binane Stress Test
Binance is no stranger to uncertainty triggered by such situations like December 2022 when massive USDC withdrawals were seen which CZ called „stress test“. This came amid growing concerns about its reserves when investors were already wary of centralized exchanges due to FTX’s swift collapse..
Conclusion
To conclude this article it is clear that Biance took necessary precautions towards security procedures when faced with unexpected events like glitches and bugs on its exchanging platform which caused temporary halts on deposits and withdrawal but resumed normal activities after identifying issues with Engine 1 .