Binance Syscoin Hacked for $45 Million [Update]
Update Number 1: Binance announces unscheduled system maintenance; rumors were swirling all over the internet of and exploitation of Syscoin (SYS) API, resulting in 7,000 Bitcoin (BTC) theft.
Update Number 2: Binance announces the reset of all API keys as a “precautionary security measure.”
Update Number 3: Binance ‘Incident Recap’ explains the root of the problem
Update Number 4 [NEW]: Binance says trading will continue at 08:00 AM (UTC)
Binance, one of the leading cryptocurrency exchanges, has announced unplanned system maintenance, which has sparked rumors. And for good reason, seeing how often this has been happening over the last year or so.
The CEO also Tweeted “Working on it.”: But he was not clear as to what they were “working” on.
Binance’s Syscoin (SYS) API hacked?
Some Twitter users are speculating that some hackers abused a vulnerability in Syscoin (SYS) API at Binance.
Twitter users took to the Twitterverse and began making speculations towards hackers taking advantage of a vulnerability in Syscoin (SYS) at Binance.
This Tweet led to some abnormal trading behavior for a while as seen below.
Further, according to @crypto_briefing, three large Bitcoin transactions totaling 7,000 BTC (approximately USD 45M went out shortly before the halt in trading.
Users even took to YouTube in an attempt to give their opinions on what was going on.
Other people on Twitter pointed the extraordinary numbers behind SYS earlier in the day.
Here is a screenshot from someone else. You can see that 13,152 SYS coins were sold at 1.1 BTC/SYS, while 11 sold for 96 BTC/SYS.
Update #2 – Binance announces API key reset
Binance indirectly expressed concerns over API vulnerabilities. This fits in perfectly with the Syscoin (SYS) API exploitation rumors that may have triggered the unplanned “maintenance.”
Binance has issued an ‘Incident Recap’ on their blog regarding abnormalities in Syscoin (SYS) trading.
Although the report gives little to no detail on what actually happened, the statement mostly elaborates on its previous update regarding API keys. Users negatively affected by the event can submit a support ticket.
Binance announced in the very same post that it will be creating a Secure Asset Fund for Users (SAFU). SAFU will be the equivalent of a self-funded insurance policy “[t]o protect the future interests of all users.”
Update #4 – Syscoin Trading Continues
Binance announced that its “system maintenance” is now complete and that TRADING WILL RESUME AT 08:00 AM (UTC). But headlines all over the internet aren’t painting a pretty picture for the future trading of Syscoin. Furthermore, it may raise some questions about how this can happen.
We will keep you posted as more developments come through the wire.
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