Investor losses occur because of crypto exchange outages. Although Binance takes initiative in counteracting the situations, many of their investors are seeking legal charges against the company’s non-functional system.
Binance spokesperson talked with CNBC, emphasizing that the company will compensate for trading losses caused by system issues. He also stated that they did not cover hypothetical situations such as unrealized profits.
Withdrawals Halted
The world’s largest crypto exchange, Binance, paused withdrawals for two hours on Monday because of a database system glitch.
In a tweet post on Monday at around 7:35 am ET, the company announced that it had temporarily disabled all crypto withdrawals.
The company then informed the people that it had resumed crypto withdrawals and shortly thereafter reissued a statement that withdrawals were again deferred.
At around 9:50 a.m., Binance announced that it had restarted withdrawals and made an apology to its users for the inconvenience.
The company’s spokesperson later released a statement as to why they had to temporarily halt fund withdrawal. The database system issue affected its service for withdrawing funds.
Binance assured its users that the team successfully fixed the temporary problem and made sure that before the company resumed the withdrawals, all data and dependencies would work as normal. She also confirmed that no funds were put at risk.
As the biggest crypto trading platform by daily volume globally, Binance may face serious consequences for the wider market due to system disruptions.
This is not the first time the company has suffered from outages; this normally occurs when the high price is unpredictable. For some users, steep losses occurred when a major outage happened in May that caused them to not be able to dispose of their coins during the sale of assets.
Some of the well-known cryptocurrency exchange platforms, such as Coinbase, also experienced outages this year. Some general trading platforms have also encountered the same issue. Noticeably, this generally happens when there is a surge of trading activity. This, as expected, elicits strong emotions from their million users.
Securing your Computer and Coins
Since it is obvious that security is essential, there is still a lack of security awareness among people.
The following things are important when using exchanges: securing your computer; securing your email account; securing your passwords; enabling 2FA (2 factor authentication); configuring 2FA; disabling SMS verification; configuring withdrawal address whitelist; securing an API; completing L2 KYC; physically securing your phones and devices; and being aware of phishing attempts.
Committed to keeping the crypto community safe and secure for users, Binance CEO CZ talked about a lot of parts of crypto security.
Here are some of the things you can do to secure your coins:
1) Don’t let anybody obtain your private keys so hacking can be prevented.
2) Don’t lose your private keys. It is important to have backups to avoid losing them.
3) Plan a secure way to share and pass on your private keys to loved ones in the event of your death.
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