Leading cryptocurrency exchange Binance briefly halted withdrawals on the Bitcoin (BTC) blockchain as the network experiences unprecedented congestion. The exchange briefly halted withdrawals twice on Sunday, as the number of unconfirmed transactions reached record levels.

Binance is reportedly under investigation by the United States Department of Justice (DOJ) National Security Division for allegedly allowing Russians to use its platform in violation of U.S. sanctions.

Bankrupt cryptocurrency lender Voyager Digital has announced plans to liquidate its assets after deals to sell them to FTX US and, more recently, Binance US, fell through. In a court filing, the lender stated it will liquidate several digital assets that cannot be withdrawn and return the proceeds to customers.

Top stories in the Crypto Roundup today:

• Binance Briefly Halts Bitcoin Withdrawals Amid Network Congestion
• U.S. DOJ Investigates Binance for Allegedly Allowing Russians to Evade Sanctions
• Voyager to Liquidate Assets After Failed Deals
• Large Bitcoin Orders Impact Price More Significantly

Binance Briefly Halts Bitcoin Withdrawals Amid Network Congestion

Leading cryptocurrency exchange Binance  briefly halted withdrawals on the Bitcoin (BTC) blockchain as the network experiences unprecedented congestion. The exchange briefly halted withdrawals twice on Sunday, as the number of unconfirmed transactions reached record levels.

Binance addressed the issue on social media, where it stated that to prevent a similar occurrence in the future it was adjusting its withdrawals fees, which are used to pay for transactions on the Bitcoin blockchain.

The exchange added it will keep monitoring on-chain activity and “adjust accordingly if needed.” It also added it’s working on enabling BTC Lightning Network withdrawals, which would alleviate such situations in the future.

At the time of the second halt, the number of unconfirmed transactions on the Bitcoin blockchain was approaching 500,000, up from around 400,000 during the first pause. This figure has since begun to decline, standing at just over 430,000 over a 12-hour period.

U.S. DOJ Investigates Binance for Allegedly Allowing Russians to Evade Sanctions

Binance is reportedly under investigation by the United States Department of Justice (DOJ) National Security Division for allegedly allowing Russians to use its platform in violation of U.S. sanctions.

No accusations have been made against the company or its executives in relation to the investigation, and the national security probe is said to be conducted alongside a criminal division investigation.

In response to sanctions imposed on Russia in April 2022, Binance limited its services within the country. However, according to a company executive, the exchange continued operations, blocking only certain areas of Ukraine no longer under government control and servicing non-sanctioned individuals.

Binance has also faced accusations of Know Your Customer (KYC) and AML violations in a suit filed by the U.S. Commodity and Futures Trading Commission in March.

In a statement, Binance claimed compliance with U.S. and international sanctions, asserting that its KYC protocols align with traditional banking standards. The company stated that every customer undergoes identity and residency checks, and it maintains a "zero-tolerance approach to double registrations, anonymous identities, and obscure sources of money."

Voyager to Liquidate Assets After Failed Deals

Bankrupt cryptocurrency lender Voyager Digital has announced plans to liquidate its assets after deals to sell them to FTX US and, more recently, Binance US, fell through. In a court filing, the lender stated it will liquidate several digital assets that cannot be withdrawn and return the proceeds to customers.

A number of other significant cryptocurrencies will be returned to customers in digital form at a recovery rate of approximately 36%, according to the filing. These assets include Aave (AAVE), Ethereum (ETH), Bitcoin Cash (BCH), and 65 others.

Voyager indicated on social media that former customers could expect some form of reimbursement soon, stating, "We are hopeful that initial distributions will begin within the next few weeks."

Last week, Binance US, the sister company of crypto exchange Binance—which asserts its independent operation—abandoned a $1.3 billion restructuring deal to purchase Voyager's assets. The company cited a "hostile and uncertain regulatory climate in the United States”to abandon the deal.

Large Bitcoin Orders Impact Price More Significantly

According to CCData's Order Book data, Bitcoin's capacity to accommodate sizable orders without substantial price fluctuations has diminished since 2023.

In January, more than 1,400 BTC (equivalent to $23 million) were necessary to influence the price by 1%. By April, however, a mere 462 BTC (valued at $13 million) were sufficient to induce the same price alteration.

State of the Crypto by Top Tier Exchange Volume

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