Due to a massive backlog, the largest crypto exchange by trading volume Binance has temporarily suspended crypto withdrawals from its platform.
Announcing the news via Twitter, Binance noted that its team has been working on it, and services would resume soon.
We have temporarily disabled all crypto withdrawals on https://t.co/QILSkzx7ac due to a large backlog.
Rest assured our team is working on it with top priority.
Thank you for your patience and apologies for any inconvenience caused.
— Binance (@binance) November 1, 2021
Binance and other crypto exchanges have faced several circumstances like this in the past. While the technical details were not revealed, the suspension was likely due to backlogs caused by network congestion.
Network congestion is a common occurrence in centralized exchanges when they face large crypto outflows during periods of peak interest. During the major May crash, several exchanges, including Binance and Coinbase, suffered massive outflows at once, causing them to temporarily suspend their activities.
However, the temporary shutdown led many investors to lose their money due to the inability to access their coins.