The Real Reasons Crypto Exchanges Are Suspending Kaspa Withdrawals

When several exchanges paused Kaspa (KAS) withdrawals in October 2025, many traders started asking the same question: what exactly went wrong? Some thought it was a network failure, others suspected exchange mismanagement. Yet, as more details surfaced, it became clear that the issue runs deeper, and more technical, than most realized.

Over the past few weeks, exchanges such as Bitget, ViaBTC, and ProBit Global have temporarily suspended Kaspa deposits or withdrawals. Bitget halted deposit services on October 5, citing maintenance updates meant to enhance user experience. ViaBTC referred to a “network anomaly.” ProBit Global went even further, announcing that it would no longer support Kaspa deposits entirely.

For users, this meant one thing: they could not move their KAS tokens. The concern grew when MEXC, which has faced previous criticism for long withdrawal suspensions, also became part of the conversation. Holders began to worry about liquidity and transparency, especially as the delays stretched without clear timelines for resolution.

The Possible Reasons Behind the Suspensions

Blockchain commentator Seb, offered one of the most detailed explanations for what happened. According to him, Kaspa processed 158 million transactions in just 24 hours, setting a world record. The network itself handled this massive load without a single failure; the real issue appeared elsewhere.

Seb compared Kaspa to a highway system, while exchanges act like toll booths and cameras that record and process every car’s passage. The highway, which is the Kaspa network, stayed smooth and open, cars kept moving; however, the toll booths (exchanges and explorers) could not record the traffic fast enough. Their internal databases had to log 158 million entries in a day, and that was where the slowdown began.

Kaspa just processed 158 million transactions in 24 hours — a world record.The network kept running smoothly.But several ecosystem partners (like wallets and exchanges) temporarily paused services.Here’s why — and it’s not what most people think.

— Seb (@TheLoadedLounge) October 7, 2025

As Seb explained, these systems needed to pause deposits and withdrawals to reconcile who paid what. Exchanges had to ensure that every transaction matched the correct balance, avoiding duplicates or missing records. In short, the network outpaced the surrounding infrastructure.

Seb summarized it clearly: “Kaspa didn’t break, it outpaced the existing infrastructure. The network moved faster than the ecosystem could record it.” He even noted that Kaspa has now launched a Kaspa Ecosystem Resilience Task Force to help partners improve performance and handle such heavy transaction loads in the future.

Growing Frustration Among Kaspa Holders

Amid these, many users expressed frustration toward the exchanges. Crypto commentator CrypticX criticized what he described as poor handling of user funds across multiple platforms. He pointed out that some exchanges have a long history of pausing Kaspa withdrawals and argued that these repeated issues make traders uneasy.

He also accused some platforms of “gambling with users’ KAS,” referring to past incidents involving different exchanges. While these claims are hard to verify, they reflect growing concern in the community that such pauses might not always be purely technical.

Bybit’s Response to the Situation

Bybit also restricted Kaspa deposits and withdrawals sometimes last month, and was asked for clarity. A user named KasLens (@KaspaLens) shared the official response from Bybit customer support.

This is the answer I got from @Bybit_Official regarding the ongoing $KAS withdrawal block. Honestly, this is ridiculous.They claim the issue is “from the KAS wallet and not on their side” I asked again for transparency and I will wait another 24h for a satisfactory answer. If… pic.twitter.com/T7uyqyzGvz

— KasLens (@KaspaLens) September 18, 2025

The message confirmed that the maintenance is from the KAS wallet itself and not from Bybit’s side, meaning the exchange has no specific timeframe for resolution. Bybit assured users that their assets remain safe and accessible during the maintenance, but deposits and withdrawals are temporarily unavailable. The reply also suggested that users could set an alert on the deposit and withdrawal page to get notified once services resume.

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This explanation aligns closely with Seb’s assessment that the issue lies in the ecosystem layer, the wallet, APIs, and databases, rather than the Kaspa blockchain itself. Still, as KasLens pointed out, the lack of precise timelines has left users waiting and calling for more transparency.

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The post The Real Reasons Crypto Exchanges Are Suspending Kaspa Withdrawals appeared first on CaptainAltcoin.