Earlier today, a glitch on the Binance exchange's technology caused spot trading to be momentarily suspended. The exchange acknowledged the problems traders were having in a tweet and assured them that it was working to find a solution as quickly as possible.
We are aware of an issue impacting spot trading on Binance.
— Binance (@binance) March 24, 2023
All spot trading is currently temporarily suspended as we work to resolve this as soon as possible.
New updates will be shared here.
Following up with a tweet, Changpeng Zhao, also known as CZ, the CEO of Binance, clarified that the problem was related to the platform's trailing stop order mechanism. He claims that a preliminary study of the issue revealed the matching engine had a flaw on a trailing stop order in what he views to be a “weird”.
The SAFU, or Secure Asset Funds for Users, abbreviation stands for Safe Asset Funds for Users. CZ also informed the public that the exchange has banned deposits and withdrawals in accordance with standard operating procedure. SAFU is an emergency fund held by the Binance exchange to safeguard users' money.
CZ subsequently informed customers on Twitter that the problem has been fixed, with the impacted engine back online, after an estimated recovery time of 30 to 120 minutes. The platform, he pointed out, needs additional time for reconciliations and for the other engines to catch up.
He clarified that the timing of the attack was the cause of the reconciliation's unusually long delay. Binance engines reportedly take hourly snapshots, and regrettably, the flaw was discovered 57 minutes into the process. So, it would take a little longer than usual for the reconciliation.
There were scarcely any negative comments in response to CZ tweets, which suggested that the audience was supportive. Instead, several people responded positively to his updates and pledged to help him.
