Have you ever been in a situation in which you made the wrong deposit at a CEX? If not, keep that going. However, many among us, including myself, have been in this situation. You deposit funds or assets to the wrong address or chain. Not an immediate reason to start panicking, but it sure is uncomfortable.
So, how can you recover funds from wrong deposits at Binance? Other centralized exchanges have similar options in place.
How to Get Your Funds Back?
Most CEXes have various options available to get your funds back. As already mentioned, it happens to most of us that we make a mistake when depositing funds. For example, you can deposit the wrong asset. Instead of the correct chain, you deposited it on a different chain. So, the token isn’t supported. Or the network is down. Another option is that you deposited it to the wrong address. As you can see, plenty of options for getting into trouble are available.
In many instances, a CEX can retrieve your assets. However, that’s not always the case, it’s not a guarantee, at all. In almost all cases, the CEX in question will ask for a fee for their services. That’s something to consider. Is it worth getting a small amount back? The recovery costs may be higher compared to the number of assets you deposited.
Having said that, most CEXes can give you an idea of how long it may take, what the costs are, and how likely it is to succeed. However, the time frame and success rate are not always given to you. On the other hand, the CEXes tend to be clear on the costs they will charge you. So, let’s take a look at some available options. For this article, we look at the options that Binance offers.
Adding funds to your account just got easier!
You can now find multiple deposit channel options when you click on the deposit button on the #Binance homepage.
Our latest #BinanceBuild update. pic.twitter.com/3WzsDK5pQ1
— Binance (@binance) March 5, 2023
Exchange Wallets vs Noncustodial Wallets
There’s a big difference between your noncustodial wallet and an exchange wallet. With a noncustodial wallet, you own and control the private keys of your wallet. However, in an exchange, your funds are in a custodial wallet. The exchange has the private keys to that wallet. Binance or any other exchange for that matter, controls that wallet.
As a result, retrieving lost funds that you sent to the wrong address, works differently on an exchange. So, to avoid this situation, find out how to deposit assets to Binance. Other exchanges have a similar procedure for depositing assets.
However, we’re here to find out how to retrieve funds. So, let’s take a look at that. Which different retrieval options does Binance offer, and what are the associated costs?
You can now deposit via multiple addresses on #Binance
Generate up to 20 addresses on a single network to manage your funds with more flexibility and efficiency.
Find all the details on how to claim your addresses here ⤵️
— Binance (@binance) July 18, 2023
Different Types of Deposit Retrieval
Binance offers various ways of deposit retrieval. However, there’s never a guarantee that Binance can recover your funds. Nonetheless, Binance can offer you various scenarios for incorrect deposits. They can also tell you how long they expect to take to recover funds for various scenarios. Another important factor is the associated cost of their recovery service. They can also tell you if you can expect a refund or a credit. See the picture below.
Source: Binance blog
Incorrect or Missing Deposit Memo
Certain assets use tags or memos as identifiers. They identify specific accounts, assuring funds get to the correct wallet. For instance, ATOM, BNB, KAVA, or XRP use this setup. If you used a tag or memo incorrectly, your funds may not arrive in your wallet. Recovery info is here.
Depositing an Old or Delisted Token
Tokens can get an update. Exchange also regularly delists tokens, for various reasons. To keep track of delisted tokens, make sure to follow the delisting announcement page.
Deposit Not Credited
You filled out all the correct deposit information. However, the token or coin doesn’t arrive in your Binance wallet. This can be due to various circumstances. For example, high traffic on a network. In turn, this can lead to a slower processing time. In such cases, it’s best to contact customer support.
Deposit to a Hot Wallet
When depositing to exchanges, most likely they move your assets to a hot wallet. However, this is different from your withdrawal address. So, don’t use your withdrawal address to deposit an asset. If you do, it will go into a hot wallet. Binance offers a free refund service within 2–3 days. From my own experience, other exchanges can charge anywhere between $40-$80, and it may take up to 2 months. Contact customer service in such a case.
Depositing Unlisted Tokens on Supported Networks
Make sure that when you deposit a token on Binance, that it’s listed. If not, the recovery fee is $200. You can find supported tokens and networks here.
Deposit Unlisted Tokens on Unsupported EVM Networks
Currently, Binance has the following EVM networks, with more to follow. OKC, KCC, CRONOS, GATE, WEMIX, FON, and ULTRON. Retrieval costs are $200.
Cross-Address Deposit
That’s when you send a token to the wrong chain. There’s no guarantee of recovery. Costs are $500.
Smart Retrieval
Currently, this works on the MATIC, TRX, BSC, FTM, ETH, and HT networks. More networks are to follow. When you deposit an unsupported token to one of these chains, you may see a ‘retrieve now’ button. Click on it to start the process. Costs are $5.
BNB Pioneer Burn Program
The BNB Pioneer Burn Program is when you accidentally lose tokens on the BNB chain. In case Binance accepts your case, you receive a refund.
#Binance Introduces the #BNB Pioneer Burn Program, Adjusts $BNB Token Burn Mechanics
➡️ https://t.co/vta403sE48 pic.twitter.com/rwadKuYID2
— Binance (@binance) September 18, 2020
Conclusion
In case you manage to make a wrong deposit on an exchange, there are retrieval programs in place. We look at how Binance handles this service.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
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