Binance suspends Bitcoin withdrawals; CZ declares money “SAFU”

Binance, the world’s biggest cryptocurrency exchange, has temporarily suspended Bitcoin withdrawals.

Black Monday in crypto continues to cause havoc. Changpeng “CZ” Zhao, CEO of the cryptocurrency exchange Binance, announced that Bitcoin (BTC) withdrawals will be temporarily suspended.

CZ, who often offers his perspective on projects and the market, tweets frequently on behalf of Binance to his 6,4 million followers. He swiftly revised the tweet to read: “This affects solely the Bitcoin network. Bitcoin may still be withdrawn on other networks, such as BEP-20.”

“SAFU” is a 2018 meme based on the word “safe” that initially appeared in a YouTube video. It also refers to the Secure Asset Fund for Users, the trade protection fund of Binance (SAFU). The fund was established during the last down market, but given Celsius’s impending bankruptcy, investors may be justified in sounding the alarm.

According to a subsequent tweet, the exchange setback may be more severe than first believed. “This will likely need a little more time to resolve than my first estimate. More developments shortly. Thank you for your understanding and patience.”

The official Binance Twitter account verified the delay and said the cause was a “stuck on-chain transaction.” According to some analysts, Bitcoin’s Lightning Network would have prevented this situation.

In fact, despite Binance’s scale and worldwide visibility, it has failed to catch up to its rivals in terms of Lightning integration. Sam Bankman-Fried, CEO of rival exchange FTX, stated recently that he would urge developers to integrate the layer-2 protocol onto the exchange, while Coinbase and Binance lag behind.

Kraken has also just enabled instantaneous account withdrawals using the Lightning Network. The total quantity of Bitcoin on the network just surpassed 4,000 BTC, which is welcome and excellent news.

Also Read: Celsius Has Stopped Client Withdrawals