Binance Wallet Spends $843K in Ethereum Gas Fees in a Day Amid Community Debate
Summary:
A Binance-owned crypto wallet has spent approximately $843,797 (530 Ether) in gas fees in just 24 hours, according to Etherscan. The spike in Ethereum network gas fees on Sept. 21 was linked to this wallet. Community reactions have been mixed; some criticize Binance's technical abilities while others attribute the gas fees to inferior APIs. Amidst criticism, Binance reportedly said they executed wallet aggregation when gas fees were low to safeguard user funds.
In the past 24 hours, a cryptocurrency wallet owned by the trading platform, Binance, has expended 530 Ether (ETH), amounting to approximately $843,797, on gas fees, as per data from blockchain explorer Etherscan. On September 21, Ethereum network gas fees experienced a rise from a meagre 6 gwei (approx. $0.17) to a substantial 332 gwei (nearly $12), per transaction. This surge in gas prices was linked to a Binance wallet, namely "Binance 14", which splurged close to $1 million on ETH network gas prices. The Binance cryptocurrency wallet's 30-day gas usage can be seen in a chart from Dune Analytics.
Public reaction towards the enormous gas fees expended by the exchange has been mixed. Belinda Zhou, a Web3 investor, was critical of Binance engineers, accusing them of incompetence, setting incorrect configuration, and excessively high gas allowances. Adam Cochran from venture capital firm Cinneamhain Ventures, attributes the abnormal gas fees to inferior APIs and criticized the exchange's technological abilities, casting doubt on its capacity to safely manage "hundreds of billions in coins across multiple protocols". Binance reportedly justified their actions by stating that they conducted their wallet aggregation process when gas fees were low to protect customer funds. Despite efforts to contact Binance for comments, Cointelegraph did not receive an immediate response.
Binance has frequently attracted criticism due to its ongoing legal dispute with the United States Securities and Exchange Commissions, amidst related controversies. On the same date, September 21, Binance's CEO Changpeng Zhao dismissed a report claiming he borrowed $250 million from BAM Management, the holding company for Binance's US counterpart. In contradiction, Zhao stated that he had lent the funds to the company. Magazine coverage included stories such as Binance's senior staff departure, Nasdaq's plan for trading AI orders and SBF's failed bail appeal.
Published At
9/21/2023 1:52:30 PM
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