Binance temporarily suspends LUNA, UST withdrawals citing network congestion

cointelegraph.com:

As the crypto community still tries to decipher Terra’s ongoing pegging-de-pegging fiasco in relation to its stablecoin offering TerraUSD (UST), major crypto exchange Binance temporarily suspended the withdrawals for Terra (LUNA) and UST on Tuesday. 

The market value of UST, Terra’s stablecoin offering, recently fell below the expected $1.00 price point as LUNA’s price witnessed a sharp decline owing to a major selloff. At the same time, the BTC/UST trading pair on Binance reached highs of more than $42,000, while other Bitcoin dollar markets struggled to preserve $30,000, as reported by Cointelegraph.

Which has caused a massive surge in BTCUST (Not Bitcoin valued in dollars, but valued in the UST stablecoin). pic.twitter.com/Xn7qcy4VMZ

As a reactionary measure against the ongoing uncertainty within the Terra ecosystem, Binance suspended all withdrawals for LUNA and UST tokens for six hours (between midnight to 6:00 AM EST), citing a high volume of pending withdrawal transactions. 

Withdrawals for $LUNA and $UST on the Terra network have now resumed on Binance.We will continue to monitor the network conditions and provide further updates here if required.

According to Binance, the high volume of pending UST transactions is due to network slowness and congestion. While acknowledging the possible inconvenience to its investors, Binance stated:

Crypto Twitter, however, reacted to Binance’s announcement by questioning the inherent values of decentralization that the crypto community stands for — comparing the move to a centralized approach usually sported by traditional finance.

Hmm... reminds me a lot of our shitty legacy financial system. https://t.co/yF11hj4i5N

As users across the globe get barred from withdrawing their own