Binance, the world’s largest cryptocurrency exchange, announced that it is investigating “strange movements” in some altcoin projects. The announcement of the exchange caused panic in the cryptocurrency space. Here are the details…
Binance made a statement: what happened with these 11 altcoin projects?
There has been a strange and sudden surge in volume for a large number of altcoins on the trading platform. This was not something most traders would expect in a weekend trading session. It was stated that the source of the volume provided was not natural. In November, many users were suggesting that there was a problem. They noticed that the orders they did not place on the platform were formed. Someone or something was causing a spike in trading volume on various assets, including AXS, and it was not targeted in this event.
Later, Binance CEO CZ confirmed that the problems are not on the side of the stock market. The issue was due to a commercial API key leak. Technically, Binance was fulfilling users’ orders and had no problems with its internal systems. In this case, Binance stated that the core system remains operating normally and without any problems.
According to WuBlockchain the keys were stolen by hackers and the problem is with the 3Commas trading bots. The official Binance account, or Changpeng Zhao himself, neither confirmed nor denied the users’ claim. However, the source of the leak may not be linked to any security breach. Sometimes users fail to store their API keys properly or provide them to third parties that do not contain them correctly. Wu Blockchain also provided a list of cryptocurrencies with strange movements. According to Wu Blockchain, the altcoins in question are as follows:
- OM
- AMP
- NEXO
- POLS
- SUN
- ARDR
- BIFI
- XVS
- ARC
- LOOM
- OSMO
What did Binance CEO say?
The exchange has launched an investigation to narrow down the suspicious accounts responsible for the problem. To reassure investors, Binance’s investigation did not point to the possibility that accounts were compromised or API keys were stolen. However, the exchange took a proactive measure against possible manipulations. According to CZ, it has temporarily blocked withdrawals for some accounts that made a profit during the volatility that caused complaints to sprout on social media.
“There is a balance in how much we need to intervene,” CZ said, further raising concerns about centralization and corporate intervention in similar situations. When asked about the possibility of using stolen or compromised accounts to make manipulative trades, CZ explained that Binance is actively monitoring such accounts, adding:
If you leave your account details to a hacked 3rd party platform and the hacker is careful using it, it may be difficult for us to detect. But we try.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.