Why Binance Has Hit Pause On Dogecoin Withdrawals

Dogecoin DOGE/USD withdrawals have been temporarily suspended by Binance due to the discovery of a “minor issue.”

What Happened: The largest cryptocurrency exchange by volume said in an announcement Thursday that it discovered “a minor issue with DOGE Network withdrawals” after carrying out a version update on Wednesday. 

“We have temporarily suspended DOGE network withdrawals until this issue is resolved. Binance is actively working with the DOGE project team to resolve the issue,” said Binance.

Some users of the exchange have taken to social media website Reddit to voice complaints that Binance withdrew DOGE from their wallets without consent and is now asking them to return coins that they do not have.

A poster on Reddit, u/Lebon2, said when they tried to withdraw on Binance they were displayed a message that read, “Unable to withdraw with account in arrears.”

The poster said an “astronomic amount of Dogecoin is indicated” even though they did not user margin recently.

Another Reddit poster DBleak said that not only was Binance stopping withdrawals but also demanding that they pay the cryptocurrency exchange.

“Not only stopping me but also demand I pay them ~2k in doge. After this is over I'm moving to coinbase whatever the outcome, I'll take the fees for peace of mind anyday,” wrote DBleak.

See Also: How To Buy Dogecoin (DOGE)

Why It Matters: A Twitter handle related to Dogecoin Developers clarified the “Binance situation” Thursday.

The developers attributed the issue to previously stuck transactions prior to the network upgrade to version 1.14.5, which went through after the transaction fee was lowered. These transactions were likely previously stuck due to insufficient fees.

4) Yesterday we were notified that previously stuck transactions (insufficient fee) had suddenly relayed successfully, post 1.14.5 update - likely because minfees have been lowered in 1.14.5...

— Dogecoin Developers (@dogecoin_devs) November 11, 2021

A proposed solution by the developers involves stopping the nodes and then starting them again with a debugger.

9) For any providers with concerns about stagnant invalid transactions, we recommend stopping the nodes, removing the mempool.dat file just in case, and then starting the node with -zapwallettxes....

— Dogecoin Developers (@dogecoin_devs) November 11, 2021

The developers said on Twitter that they were contacted by Binance over a year ago about the stuck transactions and they had instructed Binance on the issue. 

“We were not notified as to whether or not they followed these instructions…”

Dogecoin Core 1.14.5 was released on Monday and features security updates and changes to the cryptocurrency’s network policies including a reduction to fees. The update received the support of Tesla Inc TSLA CEO Elon Musk.

Price Action: At press time, DOGE traded 2.43% higher at $0.265.
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