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A Binance wallet spends almost $1M in ETH gas fees in 24h .

According to Etherscan, a blockchain data explorer, a Binance crypto wallet expended 530 Ether, equivalent to approximately $843,797, in gas fees within a 24-hour span.

On September 21, gas fees on the Ethereum network surged from a minimum of 6 gwei (approximately $0.17) to a maximum of 332 gwei (around $11.2) per transaction.

This sudden increase in gas prices was primarily due to significant spending by a Binance wallet named “Binance 14,” which accounted for nearly $1 million in ETH network gas costs.

30-day gas usage chart for the Binance crypto wallet.
30-day gas usage chart for the Binance crypto wallet.

Following the substantial gas fees incurred by the Binance exchange, community members have been vocal about their viewpoints.

Belinda Zhou, a Web3 investor, criticized Binance engineers, describing them as “incapable” and suggesting that they misconfigured the gas allowance by setting it excessively high.

This feedback emerged in response to the recent surge in gas fees, which took place on the specified date.

Criticisms and Clarifications Surrounding Binance’s High Gas Fees and Ongoing Controversies

Binance Gas Fees

During the incident involving high gas fees, Adam Cochran, a partner at Cinneamhain Ventures, expressed his belief that the subpar APIs were to blame.

Cochran criticized Binance’s technology and raised concerns about its ability to securely manage “hundreds of billions in coins across multiple protocols.”

In response to the situation, Binance reportedly stated that they were conducting their wallet aggregation process during a period of low gas fees to ensure the protection of user funds.

Binance has faced ongoing scrutiny and controversies, particularly due to its legal dispute with the United States Securities and Exchange Commission.

On September 21, Binance’s CEO, Changpeng Zhao, refuted a report claiming that he borrowed $250 million from BAM Management, the holding company of the exchange’s US counterpart.

Zhao clarified that the loan was actually the other way around, with him lending the funds to the company.

These statements shed light on the complexity surrounding Binance’s current circumstances.

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