Binance and SYS Respond to Irregular Trading
The trading suspension at Binance has been lifted following further details regarding the incident on July 3. The internal risk management system of Binance detected irregular transactions among several API users, leading to a temporary halt in trading, withdrawals, and other account functions.
This irregularity was caused by an issue with the Binance API, resulting in an exponential increase in trading volume and market pressure on Syscoin trading. The price of SYS surged dramatically, with buy and sell rates reaching remarkable heights.
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“No coins were mined outside the regular mining schedule, and the Syscoin blockchain was not compromised.” – Sébastien DiMichele, Co-founder of Syscoin
Binance has stated that various measures were taken to protect the security of API users in response to the incident. This included reversing irregular transactions and deleting all existing API keys. All Binance API users were instructed to recreate their API keys.
Furthermore, Binance warned API users to better protect their API keys in the future and to utilize the IP whitelist feature to ensure that the keys are only accessible to authorized users. Sébastien DiMichele clarified that there was no attack on the Syscoin network, and the incident was solely API-related. He noted that the Syscoin block explorer showed that 1.2 billion coins were transferred back and forth within the same block (#87670), confirming that it was not an attack on the network.
In addition to the aforementioned measures regarding API usage, Binance is offering discounts and compensations to users affected by the disruption and has announced the establishment of a Secure Asset Fund for Users (SAFU). Binance stated that starting from July 14, “10% of all trading fees collected will flow into the SAFU to protect our users and their funds in extreme cases. This fund will be stored in a separate cold wallet.”
In summary, the incident has highlighted the importance of security measures for API users and the need for vigilance in protecting sensitive information. The swift response from Binance and the clarification from Syscoin's co-founder have helped to reassure users about the integrity of the Syscoin blockchain.
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