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Author Topic: Alleged Hack of Binance Triggers Huge Slide in Bitcoin  (Read 568 times)


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Alleged Hack of Binance Triggers Huge Slide in Bitcoin
« on: March 07, 2018, 09:19:48 pm »

Alleged Hack of Binance Triggers Huge Slide in Bitcoin

By Edward Talliot - https://hacked.com/alleged-hack-binance-triggers-huge-slide-bitcoin/

Bitcoin prices are in freefall Wednesday on speculation that major crypto exchange Binance has been hacked. Although the exchange has denied being attacked, several users reported that their altcoin holdings were liquidated unexpectedly and without consent.

Binance Suspends Trading

Traders on Wednesday took to Twitter and Reddit to complain about Binance suddenly liquidating their altcoin holdings at market rate without consent or prior notification. Some have speculated that Binance’s trading bot was at the heart of the issue, while others believe hackers may have orchestrated an attack.

The exchange issued a temporary suspension on trading and withdrawals to investigate the matter further. A company spokesperson responded to a Binance Reddit thread informing traders that a formal investigation was underway. The said:

We are investigating reports of some users having issues with their funds. Our team is aware and investigating the issue as we speak. Please remain patient and we will provide an update as quickly as possible,

Launched in September, Binance has quickly emerged as one of the world’s foremost cryptocurrency exchanges. The platform ranks second in terms of trade volume behind South Korea’s OKEx. However, on Monday, Binance took the top spot in terms of volume, processing more than $1.8 billion in daily transactions.

Viacoin Pump

According to several accounts on Reddit, Twitter and elsewhere, Binance’s trading bot may have been hacked to prop up the value of Viacoin (VIA), a little-known cryptocurrency that shot up more than 250% on Wednesday. At the time of writing, Viacoin was trading at around $3.70, a gain of 50%. Trading volumes for the altcoin surged to $194 million.

Trading bots are software programs that buy and sell financial assets on behalf of traders. The algorithm executes buy and sell orders based on market movement and pre-defined rules.

Bitcoin plunged by as much as 11% on the news, hitting a session low of $9,692.12, according to CoinMarketCap. It was last down around 8% at $9,939.

Several updates have trickled in over the hour, all of which suggest Binance is desperately working to resolve the issue. The exchange struggled with server downtime after a flood of complaints about wrongly exchanged cryptocurrencies. The exchange’s customer service department has told users that a password change was not required at this time.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock

'All Funds Are Safe': Binance Denies Crypto Hack Rumors

Binance has reassured customers that their money is still in their accounts following hours of speculation that the cryptocurrency exchange had been hacked.

"All funds are safe," Binance chief executive Changpeng Zhao tweeted Wednesday afternoon.

Rumors that Binance has been hacked spread that morning after social media users reported seeing their balances at the exchange drained, sold at market rates and converted to viacoin. However, the exchange said its platform was not breached.

All funds are safe. There were irregularities in trading activity, automatic alarms triggered. Some accounts may have been compromised by phishing from before. We are still investigating. All funds are safe.

— CZ (not giving crypto away) (@cz_binance) March 7, 2018

In its initial statement on Reddit, Binance said it was investigating these reports, announcing all withdrawals had been suspended but pushing back against claims that the platform was hacked.

"As of this moment, the only confirmed victims have registered API keys (to use with trading bots or otherwise). There is no evidence of the Binance platform being compromised," the post said. "Please remain patient and we will provide an update as quickly as possible."

Discussion on Reddit indicated that investors using trading bots may have fallen victim to stolen API keys, but it is unclear how widespread the issue was.

Viacoin became one of the few cryptocurrencies to rise on the day, jumping more than 40% to $3.53, according to data site CoinMarketCap. Similarly, it saw a tenfold spike in trading volume on the day, beginning at roughly the same time as the hack rumors.

Meanwhile, bitcoin has recovered from its intraday low of less than $9,500 to about $9,675 as of press time, and prices appear to have stabilized according to CoinDesk's Bitcoin Price Index (BPI).

Possible Hack Of Third-Party Tools Affects Binance Exchange Users

Users of Binance, the top cryptocurrency exchange in the world by trade volume, are reporting suspicious activity in their accounts stemming from an apparent hack on Reddit, March 7.

Binance has stated that the issues stem from third-party tools and that “there is no evidence” of the platform itself being compromised. The only users affected are those who have issued API keys on their accounts.

Reddit user shashankkgg originally posted in the Binance Exchange subreddit that all of their altcoins were sold at market rate.

Another Redditor wrote “My balance dropped by 25%, I now have VIA and 3 of my coins were sold in their entirety. I bought one of them back, only to have it sold again.”

According to their post on Reddit, Binance stated it is investigating user reports of “issues with [users’] funds.”

While Binance is investigating the issue, they have disabled all withdrawals.

Moderators of the CryptoCurrency subreddit recommend several courses of action for traders using a portfolio management tool or third-party trade bots that use Binance API keys. These include disabling those accounts on Binance or the tools themselves, disabling trade access to the API on Binance, or resetting the API key.


« Last Edit: March 08, 2018, 12:52:14 am by dragononcrypto »
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Alleged Hack of Binance Triggers Huge Slide in Bitcoin
« on: March 07, 2018, 09:19:48 pm »


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