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Binance Froze Dogecoin Withdrawals

Binance has suspended DOGE withdrawals after transactions were getting ‘stuck’. The exchange is working with Dogecoin developers to resolve the problem.

Binance has temporarily suspended DOGE withdrawals after a minor issue that occurred following the Dogecoin network update. The issue appears to be related to stagnant invalid transactions.

The Dogecoin network carried out a version update the day before, which Binance says affected network withdrawals for DOGE. No timeframe has been offered as to when the withdrawals might resume. Dogecoin developers have also commented on the incident via Twitter, providing clarification as to what happened.

The developers say that Binance had contacted them over a year ago, informing them that there were stuck transactions, which were possibly stuck due to insufficient fees. Binance reissued these transactions, and the dogecoin developers recommended that they “use the inputs to the stuck transactions to force them to be invalidated by the replacement transactions”.

But it’s unclear if Binance followed those steps and, later, it told the developers that there were account reconciliation issues. The whole matter gets more complicated, and a few days ago, Binance notified the developers of the transactions becoming unstuck following the 1.14.5 update. Apparently, Binance updated directly from v1.14.3 to v1.14.5.

The Inner Lining

The invalid transactions appear to be a result of a lack of maintenance of the mempool. The developers recommend routine maintenance to eliminate such problems. The Binance exchange itself has performed very well in 2021, with its Binance Smart Chain and related DEX particularly strong.

However, there have been a couple of issues with respect to withdrawal suspensions and network issues — besides severe oversight from regulators.

The exchange had to suspend ETH withdrawals in early 2021 after network congestion. More recently, in Oct. 2021, an algorithm bug caused the price of bitcoin to crash to $8,200 on Binance.US.

But as far as those technical issues are concerned, it has avoided any major incidents. On the regulation front, however, it’s working on compliance as governments bear down.

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