Dogecoin (DOGE) withdrawals were stopped by Binance last night as the exchange wrestled with a sudden error following an update on the Dogecoin network.
Users reported that the withdraw function for their exchange DOGE wallets had been suspended in a sudden move by the exchange aimed at mitigating an error in the Binance system.
A firefighting report put out by the exchange failed to explain the specifics of the issue, instead Binance sought to rest investors’ minds with reassurances the suspension was temporary.
“We discovered a minor issue with DOGE network withdrawals on Binance,” read the statement.
“Binance is actively working with the DOGE project team to resolve the issue… DOGE network withdrawals will remain closed until this is fixed”.
Dogecoin holders on Binance were quick to report the issue online seeking advice and help.
“When I try to withdraw on Binance, I now have a message which indicates ‘Unable to withdraw with account in arrears’ and an astronomic amount of Dogecoin is indicated,” complained one user.
— ALİ (@aliakpinar88) November 11, 2021
What went wrong with DOGE on Binance?
The Dogecoin network update was a two-fold security patch and transaction fee update.
Transaction fees have been adjusted and finalised away from the ‘meaningful’ transaction fee model of 2014 (around 1 DOGE per byte), to a much lower recommended 0.01 DOGE per kilobyte).
Some reports suggest the Binance error may be tied to re-attempted years-old failed DOGE transactions on the Binance exchange automatically processing due to the change in transaction fee policy.
..suddenly these transactions which were invalid/dormant for years in their exchange wallet and mempool become valid. That isn't a "bug" in 1.14.5, it's an issue of wallet maintenance and properly reissuing insufficient fee transactions. (RBF.)
— Michi Lumin (@michilumin) November 11, 2021