Friday, January 21

Binance with withdrawal issues in Bitcoin

After a bug in November that mistakenly sent Dogecoin (DOGE) to its users, now the Binance is having problems with Bitcoin (BTC) withdrawals. Users warn that although the exchange has advertised support for Taproot, withdrawals are being sent to other addresses, resulting in customers losing BTC.

The problem is so serious that it caught the attention of one of the Bitcoin developers, Pieter Wuille, who was even one of the authors of the Taproot update. At the time, he explained that these bitcoins are gone, forever.

Under community pressure, Binance appears to be investigating what caused this error and has promised to refund the user who exposed the situation. Per hour, it is recommended not to try to draw BTC with P2TR addresses from Binance.

Recurring problems with withdrawals

This is not the first time that Binance has had a withdrawal problem, in November this year the exchange mistakenly sent Dogecoin to its users. This happened after an update from DOGE, which is not to blame.

In fact, the only culprit is Binance herself. Despite this, the exchange froze the accounts of all users who received Dogecoin by mistake. In order for the accounts to be released, users had to return the Doges to Binance.

The big problem is that these withdrawals were made to addresses used two years ago. In other words, many no longer have access to these wallets and, therefore, are unable to use their accounts.

The confusion was so great that even Elon Musk joined the fray to complain about Binance’s position. With this pressure, the exchange released the affected accounts after 18 days.

Now the problems are with Bitcoin Taproot

With a similar problem, this time involving Bitcoin withdrawals, Binance is now destroying bitcoins from users who request withdrawals by Taproot’s P2TR addresses starting with bc1p.

“1) @binance announces that it will support Taproot.
2) The user requests a withdrawal to their P2TR address, Binance creates a P2WSH output, burning the funds.
3) @BinanceHelpDesk blames the user for the mistake, no refund.”

In other words, Binance is swapping Taproot addresses for SegWit, or bc1p for bc1q. It is worth noting that this error is from the exchange and not from the user, as claimed by themselves.

In the last update of the user who experienced this issue, Binance stated that it is investigating the issue and will be refunding the lost bitcoins, which hasn’t happened until the end of this article.

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