• Binance, the world’s largest crypto exchange by trading volume, halted spot trading due to a matching engine glitch.
• The CEO of Binance said they detected a bug and paused deposits and withdrawals as part of their standard operating procedure.
• After identifying the issue with Engine 1, Binance restarted it but depositing would be enabled followed by internal transfers before crypto trading would resume.
Binance 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 And Withdrawal & Depositing Halted
The CEO of Binance, Changpeng Zhao, popularly known as “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. This decision was also part of their standard operating procedure (SOP).
Initial Analysis Indicates Matching Engine Encounter Bug
Initial analysis indicates matching engine encountered a bug on a trailing stop order (a weird one). Recovering this issue is estimated to take between 30-120 minutes. Crypto spot traders buy or sell assets without using leverage positions which 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 for example using leverage or borrowing money from the exchange for bigger risk.
Pre-Trading Tests To Be Run In Future
In response to an inquiry about halting withdrawals CZ stated that it directly affects funds available for withdrawal in user accounts because the logic checks with the matching engine as security procedure before processing withdrawals. After identifying the issue with Engine 1 Binance restarted it but reconciliations and engine sync-ups require time as bug occurred 57 minutes after hourly snapshots. The Binance CEO further noted that platform had achieved 100% uptime in 2022 so in future team will run pre-trading tests before depositing is enabled followed by internal transfers then 30 min “cancel only period” permitted before crypto trading resumes.
Estimated Time Of Resuming Trading
Est 60 min ish ETA given for resuming trading activities again after running pre-trading tests and enabling depositing followed by internal transfers then 30 min “cancel only period” permitted before resuming activity again