• Binance, the world’s largest cryptocurrency exchange by trading volume, temporarily halted spot trading due to a matching engine glitch that disrupted the platform.
• The bug was detected during an analysis of a trailing stop order recovery and it led to halting deposits and withdrawals.
• After identifying the issue with Engine 1, Binance restarted it and crypto trading would eventually resume after certain pre-trading tests were conducted.
Binance Halts Spot Trading Temporarily
Binance, the world’s largest cryptocurrency exchange by trading volume, earlier today, on March 24, temporarily halted spot trading due to a matching engine glitch that disrupted the platform.
Bug Detected; Withdrawal And Depositing Halted
The CEO of Binance, Changpeng Zhao (CZ), said they detected a bug during an analysis of a trailing stop order recovery. As a result, the exchange had to pause deposits and withdrawals as part of their standard operating procedure (SOP).
Crypto Spot Traders Buy Or Sell Assets Without Leverage
Crypto spot traders buy or sell assets without using leverage positions. That means users can directly swap crypto or fiat for other crypto assets and vice versa. Spot trading is distinct from derivatives trading where traders open Bitcoin or BNB positions using leverage.
Initial Analysis Indicates Matching Engine Encountered A Bug On A Trailing Stop Order
Initial analysis indicates matching engine encountered a bug on a trailing stop order which needed recovering time estimated at 30-120 minutes approximately. CZ also noted that state of orders in the matching engine directly affects funds available for withdrawal in user accounts for security reasons before processing withdrawals.
Resuming Trading After Pre-Trading Tests Are Conducted
After identifying the issue with Engine 1, Binance restarted it but reconciliations and engine sync-ups took some time as the bug occurred 57 minutes after hourly snapshots. To ensure safety in future trades, pre-trading tests will be run before resuming crypto trading – depositing will be enabled first followed by internal transfers then allowing 30 min ‘cancel-only period’ before resuming regular transactions again.
