What happen with Binance?

[JanneLee]

Saw this on reddit:

It seems that someone has phished a tonne of users API keys, they've waited till they had access to a lot people's accounts then decided to pump and dumps coins.

Started with SysCoin, then MANA, then GAS, then DNT.

They've withdrawn over 7000 BTC from Binance (~$45m)

[anon.ph011]

and binance suspended trading services hours after irregular transaction it was sad binance is one of thr biggest trading site.

[pxo.011]

Binance, the world's largest cryptocurrency exchange by trading volume, has suspended trading services, hours after irregular transactions were reported with a token on its platform..

Syscoin, a distributed network based on a fork of the bitcoin protocol, said on Twitter around 21:00 UTC on Tuesday that it noticed a potential issue with its system and subsequently asked exchanges to suspend the trading of its SYS token. The project later confirmed after an investigation that it has discovered "odd trading behavior coupled with atypical blockchain activity."

Though Syscoin has not yet disclosed details from its investigation, the issue appeared to have resulted in unusual transactions on Binance's SYS order books, which accounted for over 87 percent of the token's total trading volume, data shows.

The 24-hour price high data from Binance indicates that at one point one SYS was worth 96 BTC while its price had previously maintained around 0.00004 BTC. Yet it is unclear how many SYS tokens might have been executed at the unusual price.

In a response to CoinDesk's enquiry, Syscoin's co-founder Sebastien DiMichele said

sources:

https://twitter.com/syscoin/status/1014255355545649152
https://www.coindesk.com/binance-halts-all-trading-over-abnormal-crypto-transactions/

well this will explain a lot of this news.

[olgafox0404]

Recently, the Binance exchange did not cope with the load caused by the influx of new users. Recently, registration of new traders on the stock exchange was possible only at certain hours. Yesterday, at first, there were problems with the input and withdrawal of funds, then the site of the exchange in general went offline.
Panic started among users. And although yesterday in the official Exchange on Twitter there was a message that the exchange will be modernized, rumors about the stock exchange have already spread among users. As it turned out, Twitter Binans is not read by everyone, and the exchange did not deem it necessary to make any mailing to the registration addresses.
Today, too, there are reasons to be nervous. An hour ago I got a tweet about the fact that the team worked very hard and the input and withdrawal of funds will work soon. The preferential period of trade was also promised.

[NeuroticFish]

Though Syscoin has not yet disclosed details from its investigation

If you follow the twitter link, you'll find updated news (from 14h ago). Syscoin was hacked, but will reimburse the loses of the community with 500 BTC and 10k ETH. And the bug was fixed too.

Edit: It looks like I was fooled by an impersonator, sorry for misleading you.

I feel like I need to correct this. Syscoin didn't say that they were hacked and will reimburse with 500BTC and 10k ETH. If you'll check the post thoroughly, the username which the comment came from was @syscoin_tx. The official syscoin twitter account is @syscoin . Be careful and don't be fooled by these scammers impersonating the official twitter accounts.

[LeGaulois]

So the exploit was with the coin itself and not Binance? Because the OP is talking about Binance API keys. Anyway, it's good to refund people but honestly, you still waste some trust to your project, and the trust is not something easy to get. It's usually easier to lost than to win

[crypki21]

If sources are right, this was a very well organized attack against Binance recently. They hacked sys blockchain and also used hacked API of users' bots, therefore all API keys are disabled.

[sunsilk]

I thought it was only with SYS and that's only a pump from single person but I'm wrong.

If sources are right, this was a very well organized attack against Binance recently. They hacked sys blockchain and also used hacked API of users' bots, therefore all API keys are disabled.

Yeah it was planned and executed properly.

Binance didn't noticed the quick high withdrawals from these hackers.

If you follow the twitter link, you'll find updated news (from 14h ago). Syscoin was hacked, but will reimburse the loses of the community with 500 BTC and 10k ETH. And the bug was fixed too.

They won't regain the trust of their traders and this incident will make others to stay away from them to avoid losing their money but this act is commendable.

[mobnepal]

- Both Binance and SYS gone through massive new type of attack.
- Binance lost millions of dollar but I think those dollars belong to the users whose API keys were used to buy SYS at high prices.
- SYS supply rose like crazy which rose question about their network security.
- Binance allowed huge withdrawals without investigating deep which they should avoid in future.

In summary, Binanace haven't lost any BTC if they will not decide to cover the losses of those users who now have overpriced SYS token.

[milewilda]

Saw this on reddit:

It seems that someone has phished a tonne of users API keys, they've waited till they had access to a lot people's accounts then decided to pump and dumps coins.

Started with SysCoin, then MANA, then GAS, then DNT.

They've withdrawn over 7000 BTC from Binance (~$45m)

I was even shocked someone post in FB on an instruction about those depositing ETH and buying SYS coin and later on they do make profits and i have found out about that
incident where hackers do able to get ou 7k BTC. Another incident of hacking and these things arent surprising for exchanges.

In summary, Binanace haven't lost any BTC if they will not decide to cover the losses of those users who now have overpriced SYS token.

They do already mention about compensation but on general sense this is definitely part of their fault due to bug.

[jhenfelipe]

Though Syscoin has not yet disclosed details from its investigation

If you follow the twitter link, you'll find updated news (from 14h ago). Syscoin was hacked, but will reimburse the loses of the community with 500 BTC and 10k ETH. And the bug was fixed too.

I feel like I need to correct this. Syscoin didn't say that they were hacked and will reimburse with 500BTC and 10k ETH. If you'll check the post thoroughly, the username which the comment came from was @syscoin_tx. The official syscoin twitter account is @syscoin . Be careful and don't be fooled by these scammers impersonating the official twitter accounts.

So the exploit was with the coin itself and not Binance? Because the OP is talking about Binance API keys. Anyway, it's good to refund people but honestly, you still waste some trust to your project, and the trust is not something easy to get. It's usually easier to lost than to win

It seems to be with the api.
Helpful blog about the issue (shared by @syscoin at twitter) : Binance Resumes Suspended Services After 'Irregular’ SYS Trading Risk Alert
Update from Binance: Incident Recap on Irregular SYS Trading

[NeuroticFish]

I feel like I need to correct this. Syscoin didn't say that they were hacked and will reimburse with 500BTC and 10k ETH. If you'll check the post thoroughly, the username which the comment came from was @syscoin_tx. The official syscoin twitter account is @syscoin . Be careful and don't be fooled by these scammers impersonating the official twitter accounts.

Oh, thank you for this. And apologies. I edited my post to reflect the reality.