Binance Wallet's 24-Hour ETH Gas Spree Nears $1 Million Mark

Binance Wallet’s 24-Hour ETH Gas Spree Nears $1 Million Mark

Time Stamp: September 22, 2023 2:30 AM
Source Node: 2896986

Binance’s expensive gas fee day sent shockwaves across the crypto industry.

A Binance-associated wallet recently paid 530 Ether (ETH), or approximately $843,797, in Ethereum gas fees, in just one day. This spending spree on transaction fees happened amid fluctuating gas prices on the Ethereum network.

Blockchain data explorer Etherscan revealed that the Binance wallet, known as “Binance 14,” was responsible for the soaring gas fees on the Ethereum network on September 21st.

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That day, the Ethereum network saw transaction fees swing from a low of 6 gwei (roughly $0.17) to a high of 332 gwei (around $11.20). 

Community reactions to this extravagant spending were varied. Web3 investor Belinda Zhou was highly critical, describing the Binance engineering team as “incapable” and suggesting they had mistakenly configured the gas allowance settings. 

Venture capital firm Cinneamhain Ventures partner Adam Cochran also expressed skepticism. He attributed the elevated gas costs to flawed APIs and questioned Binance’s ability to securely manage “hundreds of billions in coins across multiple protocols.”

In response to the high fees, Binance issued a statement explaining that it conducted its wallet aggregation activities during low gas fees to safeguard user assets. 

The crypto exchange continues to be scrutinized due to its ongoing legal issues, including its current lawsuit with the US Securities and Exchange Commission.

Adding another layer to the story, Binance CEO Changpeng Zhao recently clarified reports regarding a $250 million loan from BAM Management, the holding company of Binance.US. Contrary to initial reports, Zhao stated that he provided the loan to the company, not the other way around.

The nearly $1 million spent by a Binance wallet on Ethereum gas fees in a single day has generated significant community debate and raised questions about the crypto exchange’s technical capabilities. As Binance deals with this public scrutiny, the company also faces a challenging legal landscape, further fueling concerns about its overall operations.

Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she’s not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.

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