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.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Odysee & LBRY? Is Decentralized YouTube Possible? (ANIMATED)
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.