Binance Rebuilding DOGE Wallet to Deal With User Account Freeze

The incident led to Elon Musk starting a Twitter war with the exchange.

Nov 23, 2021 at 12:23 p.m. UTC
Updated Nov 23, 2021 at 8:54 p.m. UTC

Binance is trying to rebuild its wallet to deal with a technical issue that resulted in numerous erroneous dogecoin transactions and user accounts being frozen.

  • Users previously told CoinDesk that their accounts were frozen by the exchange until they returned the DOGE, which was incorrectly transferred, back to the exchange.
  • Some users told CoinDesk their accounts had been unblocked over the past few days, and some said that they can use their funds for the other cryptocurrencies stored on their Binance wallet.
  • The largest crypto exchange in the world said on Tuesday that it is rebuilding its wallet from scratch to tackle the issue, which was caused by a recent software upgrade.
  • Binance uses a different setup than other platforms for DOGE, which is what lead to the issue, the exchange said. The issue caused old transactions to be resent to 1,674 users, the company said.
  • The incident caught the attention of Tesla CEO Elon Musk.
  • Musk asked Binance CEO Changpeng “CZ” Zhao to say that the DOGE issue “sounds shady.”
  • Binance responded that it was “not shady - just frustrating,” adding details about the fix.
  • Later Zhao clapped back; he apologized to Musk for any inconvenience cause to him and posted an article from the Guardian on Tesla recalling 12,000 cars, asking, “What happened here?”

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Anna Baydakova is a crypto reporter with a special focus on Eastern Europe and Russia. Anna owns a fraction of BTC.

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