Binance To Enable Bitcoin Lightning Network Withdrawals

Sahana Kiran
Source – Unsplash

Binance, the largest cryptocurrency exchange, has suspended Bitcoin withdrawals twice in the past 12 hours. Despite causing alarm in the community, the exchange has reassured users that their funds are secured. Now at press time, the organization announced plans to introduce withdrawals via the BTC Lightning Network.

A couple of hours back, Binance made an announcement that it would be suspending Bitcoin withdrawals again. This time, the reason was a high volume of pending transactions. After approximately three hours, the exchange reopened Bitcoin withdrawals. However, in order to process the backlog of pending transactions, they were replacing them with higher transaction fees.

Following the suspension of Bitcoin withdrawals by Binance, there was a wave of FUD with some people questioning the exchange’s financial stability. Nonetheless, Binance has reassured its users that all funds are ‘SAFU’ and even outlined the measures being taken to avoid such incidents in the future. One of these measures includes adjusting the fees charged by the exchange. In addition, Binance is working towards enabling withdrawals via the BTC Lightning Network, which is expected to be useful in similar scenarios.

Binance sheds light on increased outflows

Throughout the last couple of hours, Binance’s outflows have been making headlines. According to recent data, the exchange saw its largest-ever withdrawal in history, with more than 162,000 BTC leaving the platform.


Consequently, the price of Bitcoin has been also declining The king coin, at press time, was trading for $28,200 with a daily drop of 2.36%. This further prompted the community to doubt the exchange’s solvency and even labeled the ordeal as a “big red flag.”

As a result, the exchange took to Twitter to address the FUD. Binance revealed that the outflows were movements between the exchange’s hot and cold wallets due to the BTC address adjustments.