Elon Musk wants Dogecoin investors to be ‘protected’ as Binance extends withdrawal freeze by another week

Elon Musk wants Dogecoin investors to be ‘protected’ as Binance extends withdrawal freeze by another week
Elon Musk isn’t having Binance’s ‘shady’ business — asks for Dogecoin investors to be ‘protected’Daniel Oberhaus/Flickr via Wikimedia Commons
  • Binance’s freeze on Dogecoin withdrawals could get extended by another week, and tech billionaire Elon Musk isn’t happy about it.
  • The Dogefather told Binance that investors in Dogecoin, “should be protected from errors that are not their fault.”
  • The crypto exchange claims it is rebuilding its wallet for DOGE, which is why it’s taking longer than originally expected to raise the freeze.
  • The developers behind Dogecoin claim that Binance knew about the ‘database glitch’ a little over a year ago and chose to ignore the team’s advice.
Changpeng Zhao’s Binance has been making headlines for all the wrong reasons this year, and this time it's caught the ire of tech billionaire Elon Musk. The crypto exchange has been facing issues with respect to Dogecoin withdrawals, which Musk — the Dogefather — felt may be indicative of something ‘shady’.

However, Binance claims that there’s nothing ‘shady’ afoot — just a technical glitch that they’re sorting out. Whatever the case may be, Musk has advocated that investors in his preferred currency, Dogecoin, “should be protected from errors that are not their fault.”

Shortly after Elon Musk’s initial tweet, Binance’s Twitter account wrote out a thread to explain the issue around Dogecoin withdrawals. While apologising and recognising that the situation must be frustrating for many, the crypto exchange disclosed that it’s rebuilding its setup for its DOGE wallet entirely.

And, because of that, it may take another week — or even longer — before withdrawals are activated again.


Binance Dogecoin withdrawal freeze is getting extended by another week

This new snafu comes in the footsteps of Binance’s two-week withdrawal freeze for the meme currency after a glitch in their software executed a large number of Doge transactions from last year. This is after Binance had already suspended all crypto withdrawals due a database glitch, ten days earlier.

That’s two separate occasions that Binance’s ‘database glitches’ have led to investors being unable to withdraw their funds from a market that fluctuates hour-on-hour within just one month.

The most recent development is that the ‘two-week’ freeze is likely to be extended as Binance rebuilds its DOGE wallet. According to the crypto exchange, “The issue occurred on Binance - and not other platforms - because we have a different technical wallet set-up for DOGE.”

Binance knew about the pending Dogecoin transactions even last year

The ‘database glitch’ highlighted by Binance is with respect to old transactions linked to 1,674 users. And, according to the developers behind Dogecoin, the crypto exchange knew about this issue since last year.


The developers claim that Binance ‘opted’ to resend these transactions even though they had been instructed to instead invalidate them by the Dogecoin team.

Jack Dorsey’s new decentralised crypto exchange doesn’t want to define ‘trust’ amid regulatory uncertainty

Government plans to tax cryptocurrency gains in Budget 2022