On Monday, 16th September, Changpeng Zhao, the CEO of Binance, took to his Twitter account to reveal that a well-known account that trades with Binance had tried to hack its futures platform, but had failed. The crypto community did not react very well to the way Zhao handled the situation.
Binance Users Unharmed in the Attack
On the morning of 16th September, Changpeng Zhao, also known as CZ, posted on Twitter that a market maker had tried to attack the Binance Futures platform. In another tweet, CZ revealed that the attacker was a well-known account that traded regularly with Binance and had recently launched their own futures exchange. This was the second time that the attacker had tried to compromise Binance’s operations.
The good news is that the attack has failed and no traders were affected since the platform uses the index price and not the futures price for liquidation. The attacker, however, lost some money.
CZ also claimed that using the index price instead of the futures price for liquidation was Binance’s innovation.
In a third tweet after a few hours of the first two tweets, CZ revealed that he had had a chat with the client, that is, the attacker. According to CZ, the attack was an accident caused by a “bad parameter”on the client’s side. The attack was unintentional and the issue has been resolved between CZ and the attacker.
Community Criticizes CZ for Unprofessional Behavior
The crypto community was far from pleased with the way Binance had handled the issue. Many users criticized CZ for behaving unprofessionally – calling out a client publicly before verifying the facts.
Several crypto users were also quite skeptical of CZ’s version of the story. The questioned the accident’s “unintentional” nature in their comments and accused CZ of being a scammer.
This confusion around the attack and the company CEO’s response to it has not bode well for BNB, the native cryptocurrency of Binance. BNB is the only coin among the top ten coins which is in the red at present. At press time, it is trading at $20.79, 1% down from its price on the previous day.
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All things Blockchain & Crypto. 3 years for writing for Crypto Publications, ICOs and Blockchain cos. Book Junkie. Travel Freak. Food rules my mood. Enough said. Follow me on twitter @vinniesingh7 or mail me at vinnie[at]squadx.io