Binance.US Refers to Their Lack of Funds To Cover BCH Withdrawals as FUD! Let's Dig Into the Matter

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_Bringing Bitcoin Cash to Africa | content creator[just me carrying the world].

1 year ago

Topics: Bitcoin Cash, Binance.us, BCH, Withdrawals controversy's for BCH

On July 7th, Binance US acknowledged in a statement on its exchange status page that it did not have sufficient funds to provide Bitcoin Cash withdrawals from its native network, as shown in the following screenshot:

By examining the screenshot above, it is evident that the statement assures there was a temporary situation where the amount of Bitcoin Cash (BCH) on the Bitcoin Cash network fell below expectations. This resulted in a shortage of funds available to process BCH withdrawals. The Binance team is aware of this issue and actively working to resolve it.

To address the situation, the Binance team is committed to rebalancing assets across all networks supported by Binance. In other words, they are moving funds from other networks to the Bitcoin Cash network to ensure there are sufficient funds available for BCH withdrawals.

Once the rebalancing is complete, BCH withdrawals will resume as normal. However, while awaiting the resumption of BCH withdrawals, Binance suggests that users consider making BCH withdrawals from the BTC (Bitcoin) or BSC (Binance Smart Chain) networks, where there is no shortage of funds. This can provide a viable alternative for users who wish to withdraw their BCH during this period.

If this, my dear friends, is not an admission of a lack of funds in Bitcoin Cash, then what is?

The Binance.US Customers Help Service comunicate

However, the customer support team has come forward with a completely different story and a different statement from the one previously announced. The statement begins by clarifying that Binance.US takes the security and integrity of customer assets very seriously.

Regarding Bitcoin Cash (BCH), they assure that they maintain a corresponding 1:1 reserve on the platform, which means that for every BCH a customer holds in their account, Binance.US has one BCH in reserve.

They state that the temporary pause on BCH withdrawals occurred due to a specific technical issue. According to the platform, the Binance.US system automatically transfers funds from customer deposit wallets to "hot" wallets (connected to the internet) and then to "cold" wallets (disconnected from the internet), where assets are securely held.

However, there was an issue with the automatic transfer of BCH from customer deposit addresses, leading to the temporary pause on withdrawals.

The Binance.US technical team worked to resolve this problem, and since Sunday night, BCH withdrawals on all networks are functioning normally again.

To Finalize

It is important to note that there are different communications issued by Binance.US regarding the lack of funds for Bitcoin Cash (BCH) withdrawals.

In the first communication, Binance.US admitted in a statement on its exchange status page that it faced a situation where it did not have sufficient funds to carry out BCH withdrawals from the native network. They acknowledged that there was a shortage of available funds due to a lower-than-expected amount of BCH on the Bitcoin Cash network.

The Binance.US team stated that they were aware of the problem and actively working to resolve it, mentioning that they were rebalancing assets across all supported networks to ensure sufficient funds for BCH withdrawals. They also suggested that users make BCH withdrawals from the BTC or BSC networks as an alternative during this period.

However, subsequently, the customer support team issued a different communication, clarifying that Binance.US maintains a corresponding 1:1 reserve for BCH on its platform. They attributed the temporary pause on BCH withdrawals to a specific technical issue in their automatic fund transfer system between customer deposit wallets, emphasizing that there was no lack of funds to cover withdrawals. The technical team worked to resolve the issue and stated that BCH withdrawals have been functioning normally on all networks since Sunday night.

These seemingly contradictory communications are causing confusion and require additional clarification from Binance.US for a complete and clear understanding of the situation: do they or do they not have sufficient Bitcoin Cash for customers to withdraw in the native currency of the Bitcoin Cash Blockchain?

Now I wonder: is it wrong for the Bitcoin Cash community to consider that Binance doesn't have enough funds in Bitcoin Cash when they admit they didn't? Or is it fair for Binance to call the situation FUD when they themselves are the ones deliberately lying Pinocchio-style? And what do you think of this situation? Remember that your opinion is important.