Blockchain data explorer Etherscan has reported that a cryptocurrency wallet linked to the Binance trading platform recently executed transactions totaling 530 Ethereum. These transactions resulted in substantial gas fees, amounting to approximately $843,797, all within a 24-hour period.
Gas fees on the Ethereum network experienced a sharp increase on September 21. They surged from a minimum of 6 gwei, equivalent to about $0.17 per transaction, to a maximum of 332 gwei, approximately $11.20 per transaction. This significant spike in gas prices has been attributed to activity associated with a wallet named "Binance 14."
The crypto community didn't hold back its opinions regarding the substantial gas fees incurred during these transactions. Some critics, like web3 investor Belinda Zhou, criticized Binance's engineers, describing them as "incompetent" for possibly misconfiguring the wallet and setting excessively high gas limits .
Adam Cochran, a partner at Cinneamhain Ventures, a venture capital firm, suggested that the unusual gas charges may be due to subpar APIs. He questioned the exchange's technological capabilities, especially in securing vast amounts of tokens spread across multiple protocols.
In response to these concerns, a spokesperson from Binance clarified that the incident was unintentional. They explained that Binance had conducted a routine integration of Ethereum into one of its wallets, and any impact on gas prices was not deliberate but swiftly resolved.
Binance has recently faced criticism and legal challenges, notably in its legal dispute with the US Securities and Exchange Commission (SEC). On September 21, the CEO of Binance, Changpeng Zhao, refuted reports suggesting he had received a $250 million loan from BAM Management , the holding company for Binance's US counterparts. Zhao clarified that he had actually lent the funds to the company, not the other way around.
