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Binance Halts Spot Trading Due to Glitch

• Binance, the world’s largest cryptocurrency exchange by trading volume, temporarily halted spot trading due to a matching engine glitch on March 24.
• CEO Changpeng Zhao said the bug was discovered during an analysis of trailing stop orders, and deposits and withdrawals were paused as standard operating procedure.
• The exchange resumed operations after identifying the issue with Engine 1, but reconciliations and engine sync-ups would require time.

Binance Temporarily Halts Spot Trading

Binance, the world’s largest cryptocurrency exchange by trading volume, earlier today, on March 24, temporarily halted spot trading due to a matching engine glitch that disrupted the platform.

Bug Detected & Withdrawal & Depositing Halted

The CEO of Binance, Changpeng Zhao (CZ), said they detected a bug during an analysis of a trailing stop order recovery. As a result, the exchange temporarily had to pause deposits and withdrawals in order to address the issue and ensure security protocols were followed.

Spot Trading vs Derivatives Trading

Crypto spot traders buy or sell assets without using leverage positions. That means users can directly swap crypto or fiat for other crypto assets and vice versa. Spot trading is distinct from derivatives trading where traders can open Bitcoin or BNB positions with leverage or borrowing money from the exchange for a bigger risk payoff.

Resuming Operations After Issue Resolved

After identifying the issue with Engine 1, Binance restarted it however reconciliation and engine sync-ups would require time as the bug occurred 57 minutes after hourly snapshots. The team will run pre-trading tests prior to enabling deposits followed by internal transfers then allowing a 30 minute “cancel-only period” before reopening crypto trading again .

100% Uptime in 2022

In response to an inquiry about halting withdrawals, CZ stated that funds available for withdrawal are dependent on state of orders within matching engines as part of their security procedure before processing withdrawals. He also noted that in 2022 Binance achieved 100% uptime which demonstrates their commitment to providing reliable service regardless of unexpected events like this one