Binance announced an unplanned system maintenance while suspending trading and withdrawal during this period. Meanwhile, someone bought a few Syscoins (SYS) for 96 BTC resulting in speculation of Syscoin blockchain compromised and Binance getting hacked as the exchange announces the resetting of API keys. But with his latest tweet, Binance CEO ensures, everything is fine.
Binance halts trading
A few hours back, one of the most popular and leading exchange Binance announced an unplanned system maintenance.
— Binance (@binance) July 4, 2018
In its official announcement, it mentioned,
“Binance will undergo system maintenance. Trading, withdrawals and other account functions will be suspended during this period. Another announcement will be made once the maintenance is complete.”
However, the exchange didn’t provide any details and that got the rumor mill started. Apparently, someone bought a small amount of Syscoins for 96 BTC as evident from the proofs put on by the people.
Either there’s something wrong with binance’s API, or someone’s trading bot just bought 1 syscoin for 96BTC 🤔 pic.twitter.com/tZTruPN7k9
— Adam Bouhmad (@AdamBouhmad) July 3, 2018
Something is off about syscoin.
49,149 traded exactly at 20:44:04.504 UTC time over 0.000220 BTC price point.
Total orders add up to approx $106,687,824 USD at the time.
— Courtney C (@cjcdatasci) July 3, 2018
Initially, it was chalked up to a trading mistake, however, later on, it was registered that something wasn’t right with the Syscoin blockchain. At that time Syscoin team issued a warning and further asked the exchanges to freeze the trading of Syscoin via a Tweet.
We are investigating a possible issue on the Syscoin blockchain, nothing is confirmed but we have asked for exchanges to halt trading while we investigate.
— Syscoin (@syscoin) July 3, 2018
Reportedly, at the same time, about 7,000 BTC was moved out of the hot wallet of Binance, it was when the exchange basically went down for the system maintenance. There is no clear connection between the two on the surface, but the fact that this bizarre purchase of Syscoin was on Binance exchange and the timings colliding, the situation seems to be not just a coincidence.
Binance resets APIs
Indirectly addressing the API issue, Binance updated about the API key resetting which fits in with the rumor of API compromisation, stating:
“Due to irregular trading on some APIs, Binance will remove all existing API keys as a precautionary security measure. All API users are requested to recreate their API keys. We apologize for any inconvenience caused, and thank you for your patience.”
— Binance (@binance) July 4, 2018
Apparently, the problem was not with the Syscoin blockchain rather Binance exchange.
They used $SYS because of the relatively low hashing power
They then mined all the $SYS blocks for a while to prevent a rollback of the blockchain
— All Things Crypto (@GuavaAirlines) July 4, 2018
Looks like @binance has halted all trading on all pairs, on it’s exchange due to the compromise it had with @syscoin. Let it be noted there are no issues with the Syscoin Blockchain, and the chain itself was not compromised.
— Syscoin Whale (@sys_whale) July 4, 2018
Later, Syscoin also confirmed that Syscoin blockchain is safe and they have already asked the exchanges to start the trading.
As a precaution we had requested exchanges halt $SYS deposit/withdrawal today after we observed odd trading behavior coupled with atypical blockchain activity. After investigating the #Syscoin blockchain is safe. We are asking exchanges to reopen. Detailed wiki post tomorrow. pic.twitter.com/NEypr531zi
— Syscoin (@syscoin) July 4, 2018
Now, API key creation has been re-enabled by Binance but trading will be commenced only after maintenance completion as explained by the exchange:
“Binance has removed all prior existing API keys and has now re-enabled API key creation. API users may now recreate their API keys from their user account center. Another announcement regarding the re-opening of trading will be made once the maintenance is complete.”
Right now, no clarity has been provided by either the exchange or Syscoin, though Syscoin will be soon providing a complete explanation as mentioned in their tweet. However, if the speculations of Binance getting hacked is true, this would be a huge blow to the crypto community and would even shake people’s confidence.
However, in his latest tweet, Binance CEO, Changpeng Zhao ensures everything is fine.
Update: things are under control, just have some more work to do before enabling trading. Should be soon. Ignore FUD and bad news. Now is an good time to identify which news are bad quality (and remove them).
— CZ (@cz_binance) July 4, 2018
At the time of writing, Syscoin (SYS) was at $0.02848 with a hike of 39.74 percent in the past 24 hours. It’s also running in the positive by 43.31% in the BTC market as well. Currently, at 67th rank, its market cap is $152 million.
What are your views on this chaotic situation? Share your thoughts with us!
Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.