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Binance Provides “The Inside Story” On DOGE Withdrawal Issues

Following weeks of technical difficulties, Binance has resolved an issue pertaining to Dogecoin withdrawals from their exchange. Today, the company released a statement explaining why the issue arose in the first place, and what it took to resolve it. This comes following a frustrated exchange between Binance and Tesla’s CEOs while the problem was still being worked out.

The Inside Story

The explanation came in a statement from both Binance and Dogecoin Core maintainers, posted through Binance Blog. What began as a “fairly straightforward upgrade” became a 17-day problem with Dogecoin holders being unable to withdraw funds. Furthermore, over 1600 users received old DOGE transactions.

Apparently, a “combination of unlikely factors” contributed to the issue, which only affected Binance’s exchange:

“In short, if 1) your platform had listed DOGE all the way back in 2019, at v1.14.0 2) had transactions stuck in the wallet 3) had upgraded the wallet to v1.14.2 4) AND then updated to v1.14.5 — you can have an issue,” reads the statement.

Binance CEO says willing to step down amid crypto crackdown
Changpeng Zhao (CZ), CEO of Binance. Source: CNBC

Unfortunately, Binance met all of these parameters, leading to old, double-sent transactions. Worse yet, the situation required the building of Binance’s specialized DOGE wallet again from scratch. This is why the problem took until the end of the month to fix.

Both Dogecoin core and Binance maintain that neither party was at fault in this situation and that nothing “shady” transpired. As such, nobody will lose their jobs because of the incident.

On Saturday, they silently re-tested the network after making the appropriate adjustments. As of today, Dogecoin withdrawals from Binance have resumed.

Feuding With Elon

The statement would match CZ’s and Binance’s previous explanation of the issue over Twitter, in response to Elon Musk. Last week, Musk scrutinized Binance on behalf of Doge holders, saying that they should not suffer for Binance’s mistake. He even suggested that Binance was acting “shady”.

Today’s statement contained a reference to the dispute.

“You may have heard the news, thanks to some friends on Twitter. Hi Elon. Hey CZ.”

Though tensions between the two settled fairly fast, CZ was angry at the time. Following Musk’s criticism, he clapped back with a snarky remark about faulty Tesla vehicles from earlier in November.

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It would seem CZ intended to demonstrate that it is normal for problems to arise, and that bad faith isn’t always at play. As Binance’s statement read today, it can take time to “locate, diagnose, and fix,” such issues.

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