Binance Wallet Spends Over $1 Million In Gas Fees In One Day

Binance-linked wallet was observed to spend over $1 million in gas fees in one day.
A venture capital firm partner attributed the accident to the exchange’s “super shitty tech.”
He questioned if Binance is capable of handling billions of dollars worth of coins across chains.

Earlier today, venture capital firm, Cinneamhain Ventures’ partner, Adam Cochran tweeted that Binance‘s gas expenditures amounted to nearly $1 million in just one day. According to data from Etherscan, Ethereum network transaction fees observed a significant surge, ranging from a minimum of 6 gwei, worth approximately $0.17, to a peak of 332 gwei, almost $11.2 per transaction. Moreover, this sudden rise was linked to activities tried with a wallet owned by Binance, identified as “Binance 14.”

Binance spent almost $1m on gas, paying up to 300 gwei when it was under 9 gwei, on tx.
The great thing about this, is the benign explanation is they have super shitty tech.
Which doesn’t bode well for a company that claims to have never been exploited, be capable of merkle… https://t.co/CXODwJ3I8v
— Adam Cochran (adamscochran.eth) (@adamscochran) September 21, 2023

Additionally, data from Dune Analytics reported that Binance 14 consumed a staggering 362 ETH in gas on September 21, with the number of transfers reaching an astonishing 94,000, significantly surpassing its typical activity level.

Cochran attributed the mishap to Binance’s “super shitty tech.” Moreover, he noted that this questions the credibility of a company that claims to have the capability to provide merkle tree proofs to guarantee the absence of accounting errors, and asserts the ability to securely store hundreds of billions worth of coins across various protocols. Meanwhile, crypto investor Belinda Zhou provided some clarity:

Just incapable engineers from the Binance wallet team got the configuration wrong. The gas allowance was set too high.

She also highlighted that Binance is expected to release a case report in the near future, and it’s quite likely that someone within the team will face termination as a result. On the other hand, Binance coin-founder, Yi He explained that they were conducting a wallet aggregation process during periods of low gas fees. Their intention was to streamline users’ withdrawal processes and enhance the security of funds.

Coincidentally, on September 20, Binance CEO Changpeng Zhao advised his followers to exercise caution when using decentralized exchanges. This tweet came in after news of the recent attack on Balancer, a decentralized finance protocol.

Source: https://coinedition.com/binance-wallet-spends-over-1-million-in-gas-fees-in-one-day/