Binance Crypto Wallet Spends $843,797 in Gas Fees in Just 24 Hours
In a surprising turn of events, a crypto wallet belonging to trading platform Binance has spent a staggering 530 Ether (ETH), worth approximately $843,797, in gas fees in just 24 hours, according to blockchain data explorer Etherscan. This incident has sparked controversy and criticism within the crypto community and raised questions about Binance’s technical capabilities.
The spike in gas fees occurred on September 21, with prices on the Ethereum network ranging from a minimum of 6 gwei (around $0.17) to a maximum of 332 gwei (around $11.20) per transaction. This sudden surge in gas prices was linked to the Binance wallet, known as “Binance 14.” The exorbitant fees caught the attention of community members and raised concerns about the exchange’s engineering and configuration.
Web3 investor Belinda Zhou expressed her opinion on the matter, describing Binance’s engineers as “incapable” and suggesting that they misconfigured the gas allowance, resulting in excessively high fees. Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, further criticized Binance’s technology. He voiced doubts about the exchange’s ability to secure “hundreds of billions in coins across multiple protocols.” These comments highlight the skepticism surrounding Binance’s technical competence.
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In response to the criticism, a Binance spokesperson clarified that the high gas fees were not intentional. They explained that Binance had simply performed a routine consolidation of ETH to one of its wallets, and any impact on gas prices was unintentional and quickly resolved. However, despite this explanation, many community members remain skeptical about the incident and the exchange’s ability to handle such technical issues.
This incident is not the first time Binance has faced controversy. The exchange has been entangled in legal disputes, particularly with the United States Securities and Exchange Commission (SEC). The ongoing legal battle has put Binance under scrutiny and raised concerns about its compliance with regulations. CEO Changpeng Zhao recently refuted a report that he had borrowed $250 million from BAM Management, the holding company of Binance’s U.S. counterpart. According to Zhao, he had actually lent the funds to the company, not the other way around.
The recent gas fee incident adds to the growing list of concerns surrounding Binance. The exchange’s reputation and technical capabilities are being called into question, and it remains to be seen how Binance will address these issues and regain the trust of its users and the wider crypto community.
In conclusion, the crypto wallet associated with Binance, a leading trading platform, spent a significant amount in gas fees within a 24-hour period. This incident has raised concerns and criticism about Binance’s technical capabilities and engineering. The exchange has attributed the high gas fees to a routine consolidation of ETH, stating that it was unintentional and quickly resolved. However, community members remain skeptical, especially given the ongoing legal battles involving Binance. It is crucial for Binance to address these issues transparently and regain the trust of its users and the wider crypto community.
