- Binance paused withdrawals ~20 minutes during a sharp selloff due to technical strain, not liquidity issues.
- Bitcoin dropped over 13%, briefly trading below $64,000 as trading activity surged across exchanges.
- On-chain data showed Binance balances increased, indicating deposits exceeded withdrawals despite online panic.
Binance and Bybit reportedly paused withdrawals as selling pressure intensified across crypto markets. The pauses came as Bitcoin fell sharply and user activity increased during the market downturn.
Withdrawal pauses reported during market selloff
Reports emerged that Binance and Bybit temporarily halted withdrawals during a fast-moving crypto selloff. Users reported delays as prices dropped and trading activity increased across major platforms. Bitcoin fell more than 13 percent and traded below $64,000 during the decline.
BREAKING: Binance & ByBit have reportedly begun halting withdrawals as the crypto selloff accelerates pic.twitter.com/1ETLBEYLW1
— Financelot (@FinanceLancelot) February 5, 2026
Binance acknowledged a withdrawal interruption and cited technical difficulties. The exchange said its systems were under strain and that teams were working on a fix. Withdrawals were later restored after the issue was resolved.
Binance cites technical issues and liquidity strength
Binance stated that the withdrawal pause lasted for about 20 minutes and was caused by a technical issue. The exchange said the disruption was not linked to liquidity pressure. It added that systems returned to normal once the problem was resolved.
In a post on X, Binance told users, “We are aware of some technical difficulties affecting withdrawals on the platform.” The exchange said its technical team acted quickly to address the issue. Binance also confirmed that withdrawal services were restored shortly after.
We are aware of some technical difficulties affecting withdrawals on the platform. Our team is already working on a fix, and services will resume as soon as possible.
We appreciate your patience and will keep you posted! pic.twitter.com/382Ua4naCN
— Binance (@binance) February 3, 2026
Binance reiterated that it maintains strong liquidity across its platform. The exchange advised users to remain calm during periods of market volatility. It also suggested using personal wallets as an added precaution for asset management.
Social media activity drives user concerns
During the price drop, posts on X urged users to withdraw funds from exchanges. This activity raised concerns among traders and added pressure on platforms. Binance and Bybit became central to online discussions during the selloff.
On-chain data later showed that Binance balances increased during this period. This suggested that deposits exceeded withdrawals despite online claims. The data contrasted with social media narratives about mass fund exits.
Exchange leaders respond to rumors and claims
Binance co-founder He Yi said on X that a coordinated withdrawal campaign had emerged within parts of the community. She noted that after the campaign began, the total assets held in Binance addresses increased. This indicated that deposits exceeded withdrawals during the period of market stress.
Binance co-founder He Yi posted on X that some users in the community had launched a "withdrawal campaign." However, after the campaign began, the amount of assets in Binance’s addresses actually increased. She noted that regularly initiating withdrawals across all trading…
— Wu Blockchain (@WuBlockchain) February 5, 2026
Yi said that regularly initiating withdrawals across trading platforms can function as an effective stress test. She warned users against rushing blockchain transfers during volatile conditions, as mistakes can be costly. Yi also referenced self-custody options such as Binance Wallet, Trust Wallet, and hardware wallets as precautionary choices.
Changpeng Zhao responded to claims that Binance sold Bitcoin to fuel the selloff and dismissed them as false. He said the funds in question belonged to users and not the exchange. Zhao added that Binance does not trade user assets and continues to operate with reported reserves of about $155.64 billion.
