Binance Wallet Spent $900,000 On Gas Fees
On Sept. 21, Ethereum network gas fees skyrocketed as one Binance exchange wallet spent nearly $900,000 to pay for the gas of a single transaction.
Analyst firm Etherscan noticed that the "Binance 14" wallet had spent 530 ETH (or $843,797 at the time). This sparked a negative reaction from the community. Many called Binance developers "incapable".
Belinda Zhou believes that there was a misconfiguration and the gas fee was set too high. And Adam Cochran of Cinneamhain Ventures believes the problem lies in a poor API, raising questions about the security level of the exchange.
Binance spent almost $1m on gas, paying up to 300 gwei when it was under 9 gwei, on tx.
— Adam Cochran (adamscochran.eth) (@adamscochran) September 21, 2023
The great thing about this, is the benign explanation is they have super shitty tech.
Which doesn’t bode well for a company that claims to have never been exploited, be capable of merkle… https://t.co/CXODwJ3I8v
Binance representatives responded to the criticism by saying that the incident was due to internal work. The exchange was establishing security of users' funds by aggregating wallets during the period of low gas prices.
Binance responded that it was doing the wallet aggregation process when gas fees were low, in order to facilitate users’ withdrawals and ensure the safety of funds.
— Wu Blockchain (@WuBlockchain) September 21, 2023
