Binance blamed for Bitcoin loss in withdrawal to Taproot-format address

One of the users on the Bitcoin Stack Exchangedescribed an unsuccessful attempt to withdraw bitcoins to an address of the new format, added with the Taproot update. He blamed the cryptocurrency exchange Binance for the loss of funds.

“A few days ago I requested a BTC withdrawal on Binance, using the address bc1p, and the request went through as usual, with no problems or warnings,” the user wrote.

So, this allegedly happened:
1) @binance announces they’ll support Taproot.
2) User requests withdrawal to P2TR address, Binance creates P2WSH output instead, burning the funds.
3) @BinanceHelpDesk blames user for mistake, no refund.pic.twitter.com/FR202rRrVC

— Murch (@murchandamus) December 26, 2021

The funds did not arrive to the wallet, so the author of the post checked the transaction ID. He said that another address received exactly the same amount. Support said that withdrawals to ‘bc1p’ are impossible; the system converted it to the ‘bc1q’ format.

In November, as a result of a software update glitch, Binance again processed an unknown number of user transactions with Dogecoin, made years ago. After that, the exchange demanded that the senders of the original transactions reimburse the losses at the current rate.

During the period of resolution the platform temporarily disabled Dogecoin withdrawals.

The incident drew the attention of Elon Musk. After that, representatives of the exchange explained that the problem lay in the wallet’s technical setup for DOGE.

As noted, 17 days after the outage Binance resumed withdrawals, but at that time did not return some clients’ debited funds.

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