Binance Blames Kamino Finance as Users Report Failed Crypto Transactions, But Is It Really Their Fault?

Binance Customers Turn to Kamino Finance for Clarification Amid Failed Transactions

Binance users have been grappling with failed transactions and vanishing balances when attempting to interact with Kamino Finance through the exchange’s wallet service.

The situation has raised concerns on social media, with users reporting issues ranging from failed token swaps to stalled liquidity transactions.

A user posting under the X handle “@Bellypig” voiced frustration,

Translation:

Teacher, have you ever experienced despair?
Binance Alpha has a huge bug. When a transaction fails, the balance will disappear.
No matter how you restart or clear the cookies, it will be useless. You can only wait for 3-5 minutes.
Today's transaction volume is 1024, the cost is 10U, and it failed 5 times, and it controlled me for 15 minutes 🤣🤣
Speed ​​Optimization

Binance Issues Statement on Failed Transactions

Amid growing user complaints, Binance Wallet addressed the issue publicly on 29 April 2025.

The exchange acknowledged that the problem was linked to Kamino Finance’s decentralised exchange (DEX), which is responsible for handling these transactions.

Binance explained that the failure rate of the KMNO token, used within the Kamino protocol, is high, attributing the technical difficulties to the DEX’s infrastructure.

Binance reassured customers that it had been in touch with the Kamino Finance team to resolve the issue, confirming that Kamino was aware of the situation.

Source: X

The exchange committed to monitoring the problem and working on optimising the process in the future.

Kamino Finance Remains Silent as Complaints Pile Up

Despite the attention drawn to the issue, Kamino Finance has not responded publicly to the mounting user complaints or to Binance’s claims.

The Solana-based DeFi protocol, which offers lending, leverage, and liquidity services, operates independently from centralised platforms like Binance.

Therefore, users remain uncertain whether Kamino’s platform is the sole cause of the failures.

Divergent Views on the Root of the Problem

While Binance has placed the blame on Kamino Finance’s DEX, some users have expressed doubts about this explanation.

“Bellypig” pointed out that the issues weren’t unique to Kamino Finance, mentioning similar failures involving AERO, another token.

The Binance user questioned whether the problem was really tied to the DEX behind Kamino Finance, stating,

“AERO also fails, so there is something wrong with AERO’s dex, right?”

Source: X

Adding on, “Bellypig” highlighted discrepancies between the responses received from Binance customer service and the public statement issued on X.

The customer service representative reportedly suggested that the issues were due to “price volatility,” a common risk in cryptocurrency trading.

Source: X

This response didn’t align with the more technical explanation Binance later provided on X.

Could Binance's Platform Be at Fault?

Some users also suggested that the problem may extend beyond Kamino Finance’s DEX, with one customer referencing similar issues involving a token called Fartcoin.

Source: X

Source: X

This sparked further debate among traders, with some believing the issue may lie within Binance’s platform itself rather than solely with external DeFi protocols.

As traders continue to report problems, Binance is under pressure to address the root causes of these issues and provide more clarity to its user base.

Despite the ongoing confusion, the exchange continues to direct its users towards Kamino Finance for a resolution, leaving many to wonder whether Binance’s platform is truly blameless.