What is the story behind Binance’s temporarily locked withdrawals?

On Saturday, osmosis was trading around $0.80 when a massive green candle wick hit $12, representing a more than 1200% gain in just minutes.

On Sunday, December 11, CZ Binance announced that, in response to numerous complaints on social media, Binance has temporarily suspended withdrawals from some profiting accounts.
The world’s number one Crypto Exchange tweeted before CZ Binance, so what happened and why did Exchange scrutinize withdrawals from a profiting account?

WHY Binance temporarily locked withdrawals?

On December 10, $OSMO, $FUN, $SUN, $ARDR, and $GLM had quick, huge candle wicks that caused so much liquidation that the Osmosis (OSMOUSDT) spike was huge. On Saturday, osmosis was trading around $0.80 when a massive green candle wick hit $12, representing a more than 1200% gain in just minutes.
Binance Exchange
Source Tradingview
Ardor (ARDRUSDT) hit more than 100%. Also, Fun Fair (FUNUSDT) has more than 45% of the market, Sun (SUNUSDT) has more than 40%, and GLM (GLMUSDT) has more than 10%.
Everyone on social media is talking about Binance OSMOUSDT’s wild pump and dump in an hour, up from $0.8 to $12 and then back down to $0.8. That’s the reason Binance responded to this event that happened on December 10.

11 December Binance Exchange & CZ Respond

The crypto exchange said, “We are aware of the abnormal price movements,” and they mention those coins that have suspicious price increases.

“Our team is investigating and taking appropriate actions in regards to the suspicious accounts.” said in tweet

Also told, “This activity does not appear to be due to compromised accounts or stolen API keys; funds are SAFU.” In the end, we will update more on this thread.

Then CEO Binance updated this thread and told us that based on our investigation, “hackers don’t deposit” any funds; this appears to be just market behavior; whales deposit funds and buy those coins, and then other people followed them. “Can’t see linkage between the accounts.”


“We temporarily locked withdrawals on some of the profiting accounts, which caused a lot of complaints on social media, all from different countries,” said CZ

The question is that is just a market behavior so why this exchange temporarily looked withdrawals?

In the reply of a Twitter user “Sometimes, mass psychology works in strange ways. If a lot of people follow a small price increase, it could mean there is demand.” said CZ

That’s a point CZ is this is a free market we can’t do anything “We don’t know. (Not financial advice). We just see orders coming through.” said CZ

Binance lifted temporarily locked withdrawals

The suspended account’s owner fought with CZ on Twitter; Crypto Avanza translated the tweet using Twitter’s auto-translation feature.

“I’m the same as you, I provided the proof of ok funds, but they still don’t recognize it, so I’m speechless. During the cex fud, I deliberately transferred funds from exchanges such as bybit to Binance, but it was closed.” account owner which suspends by Binance

The Account owner shares the chat between exchange customer support
binance exchange
source Twitter handle cryptoboundary

“In addition, the experience of communicating with sisi this time is that internal transfers between Binance accounts are not likely to trigger risk control, and transfers between real-name accounts on the CEX exchange are easy to solve even if risk control is triggered. The slightly troublesome thing is the wallet address on the chain and the exchange address. For transfer, if there is a problem with the u of the wallet on the chain, it will be troublesome. Everyone pay attention in the future. Playing on someone else’s table means following other people’s rules.” said by account’s owner

Read More: Axie Infinity (AXS) is up more than 100% after a massive downside

Wrapping Up

In the previous Axie Infinity, we see exactly a massive pump in just minutes on Binance, AXS suddenly surge more than 200% then CarlosOMFG a Twitter handle mentioned CZ Binance and Binance Exchange he said “Anyone wondering why #AXS is pumping. Someone somehow bought a million dollars worth on my @cz_binance @binance account.”

Then CZ blamed this as an API failure, not Binance Exchange.

I don’t trust centralized Exchanges to keep your fund safe in cold storage wallet that’s it.

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