Binance Wallet Gas Fee Expenditure Surpasses 1 Million Dollars in a Single Day

Crypto News– Earlier today, Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, made a striking revelation on Twitter regarding Binance’s staggering gas expenditures, which amounted to nearly $1 million in a single day. This revelation came to light as Ethereum network transaction fees experienced a significant surge, fluctuating between a minimum of 6 gwei, equivalent to roughly $0.17, and a peak of 332 gwei, an astonishing $11.2 per transaction.

Binance Wallet Gas Fee Expenditure Surpasses 1 Million Dollars in a Single Day

The abrupt surge in gas fees was directly attributed to activities associated with a Binance-owned wallet identified as “Binance 14,” as evidenced by data from Etherscan.

What added to the shock factor was data from Dune Analytics, which unveiled that Binance 14 had consumed a mind-boggling 362 ETH in gas fees on September 21, accompanied by an astonishing 94,000 transfers, vastly surpassing its typical level of activity.

Cochran did not mince words, blaming Binance’s predicament on what he referred to as “super shitty tech.” Furthermore, he questioned the credibility of a company that touts its ability to provide merkle tree proofs for ensuring the absence of accounting errors and claims to securely store hundreds of billions of dollars in assets across various blockchain protocols.

Furthermore, she pointed out that Binance is on the verge of releasing an official case report, indicating that someone within the team may face termination as a consequence of the incident. Conversely, Yi He, the co-founder of Binance Coin, provided an explanation, stating that the platform had been in the process of aggregating wallets during periods of lower gas fees. Their primary objective was to simplify user withdrawals and bolster the security of users’ funds.