Binance user lost bitcoins while withdrawing to Taproot address – Bits Media

In mid-November, the Taproot update was activated on the Bitcoin network.. However, Binance, As it turned out, does not support new bc1p format addresses and the exchange user lost BTC when trying to withdraw.

On the StackExchange forum, a user wrote:, that when withdrawing funds you indicated the address in bc1p format. The system verified the address and continued the withdrawal process, even provided the transaction ID. but, when the funds didn't arrive, the user checked the transaction and found, that the withdrawal address has been replaced with a completely new one, in bc1q format (Segwit). 

It turned out, that upon withdrawal, the Binance system automatically “converted” the wallet address into a supported format and sent the bitcoins there. Of course, The user does not have access to this wallet, therefore means, in fact, were lost. Fortunately, the amount is not so large - the user lost about $7 000 в BTC. There is currently no information about compensation from Binance.

Interesting, что еще до активации обновления Taproot представители биржи написали, что площадка будет полностью поддерживать все функции обновления. Looks like, что вывод на адреса нового формата не был проверен, which led to the loss of funds. As developer Peter Vulle wrote: (Pieter Wuille), Bitcoins cannot be returned:

"Afraid, the coins were burned. P2TR format addresses encode a public key, а адреса P2WSH кодируют хэш скрипта. Использовать адреса P2TR в качестве адресов P2WSH невозможно, это бы сломало все шифрование SHA-256. Это не Ваша вина и Вы должны требовать свои средства назад. У адресов P2TR, like any other, there is a checksum and the algorithm for calculating it has changed with the Taproot update. The fact, that they even accepted this address, talks about that, that the employees on the sender’s side are extremely incompetent".

Recall, that in mid-November the Binance exchange had a problem with transactions in the Dogecoin cryptocurrency. Transactions are stuck 1 600 users. maybe, the efforts of the platform developers were entirely aimed at resolving this issue, and full support for Taproot was never implemented.