Binance Freezes Doge Withdrawals as Users Report Being Asked to Return Coins They Don’t Have

Binance users say that the crypto exchange is not allowing them to make any withdrawals until they return the DOGE.

AccessTimeIconNov 12, 2021 at 12:17 a.m. UTC
Updated May 11, 2023 at 4:04 p.m. UTC

Binance, the world’s largest crypto exchange by trading volume, has temporarily suspended withdrawals of DOGE following an upgrade, the company said Thursday.

“We discovered a minor issue with DOGE network withdrawals on Binance after carrying out a version update on 2021-11-10,” Binance said in a post on Thursday morning without specifying what the “minor issue” was. “As a result, we have temporarily suspended DOGE network withdrawals until this issue is resolved. Binance is actively working with the DOGE project team to resolve the issue.”

  • Has Crypto Become Political?
    00:51
    Has Crypto Become Political?
  • FTX Victims File to Recover $8B in Forfeited Assets; Will Biden and Trump Shake Hands Before Debate?
    02:14
    FTX Victims File to Recover $8B in Forfeited Assets; Will Biden and Trump Shake Hands Before Debate?
  • DJT Token Rallied 180% on Trump Rumors
    00:55
    DJT Token Rallied 180% on Trump Rumors
  • How Fed's Interest Rate Decisions Could Affect Crypto
    21:50
    How Fed's Interest Rate Decisions Could Affect Crypto
  • But the upgrade appears to have created significant problems for some of Binance’s users. Those users claim that the crypto exchange first initiated the withdrawal of dogecoin without their consent, and is now asking the users to return the dogecoin that they don’t have in their Binance accounts.

    Screenshots shared with CoinDesk by several Binance users show that Binance asked them to return DOGE to the exchange, or else their withdrawal function on the exchange would remain deactivated. But the affected users said they didn’t even have any DOGE in their Binance accounts to return.

    In a tweet thread on Thursday by a Twitter account representing dogecoin developers, the developers explained that the initial withdrawal transactions appear to have been follow-up attempts to carry out requested transactions from years ago that were “stuck” because of “insufficient fees.”

    The Dogecoin network upgrade initiated a few days ago appears to have triggered those old transactions, according to the tweet thread. On the upgrade’s GitHub page, it says the upgrade made final “a new minimum fee recommendation” for all participants on the network; the developers therefore believe that the transactions that got stuck appear to have been retried, even when the users no longer own the coins.

    The Dogecoin developers claimed that they tried to work with Binance when the exchange first reached out over a year ago on the “stuck transactions,” but they “were not notified as to whether or not [Binance] followed” their instructions to fix the problem.

    Binance didn’t immediately respond to requests for more information about the issue.


    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Muyao Shen

    Muyao was a markets reporter at CoinDesk.

    Anna Baydakova

    Anna Baydakova was CoinDesk's investigative reporter with a special focus on Eastern Europe and Russia. Anna owns BTC and an NFT.


    Read more about