Binance Hacked or Syscoin [SYS] Blockchain Compromised – What’s the Real Deal

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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.

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.

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.

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.”

Apparently, the problem was not with the Syscoin blockchain rather Binance exchange.

Later, Syscoin also confirmed that Syscoin blockchain is safe and they have already asked the exchanges to start the trading.

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.

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!

Anjali Tyagi

Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.

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