A popular cryptocurrency exchange, Binance, faced a significant expense while using the Ethereum network. According to Etherscan, they spent 530 Ether, equivalent to around $843,797, in a single day on transaction fees.
This sudden increase in fees, which skyrocketed from about $0.17 to approximately $11.2 per transaction in just one day, was linked to a wallet associated with Binance 14, which spent nearly $1 million on these fees.
The crypto community had mixed opinions on this issue. Some believed that Binance’s technical team had made errors by setting the fees too high, while others raised concerns about the exchange’s technology and its ability to safeguard user funds.
In response, Binance explained that they were engaged in “wallet aggregation” during a period of low fees to ensure the security of users’ funds. Binance, which has been under regulatory scrutiny recently, also saw its CEO addressing financial matters related to the company.
Binance’s massive Ethereum transaction fee spend raises questions about their fee-setting processes and technology, amidst regulatory scrutiny.