Binance Resumes Trading After Addressing Irregularities in Syscoin Transactions
Autor: Mining Provider Editorial Staff
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Kategorie: News
Zusammenfassung: Binance lifted its trading suspension after addressing irregular transactions linked to its API, which caused a surge in Syscoin (SYS) prices; no compromise of the Syscoin network occurred. The exchange implemented security measures for API users and established a fund to protect user assets.
Binance and SYS Respond to Irregular Trading
The trading suspension at Binance has been lifted following further details regarding the incident on July 3. On that day, Binance's internal risk management system detected irregular transactions among several API users, leading to a temporary halt in trading, withdrawals, and other account functions.
This irregularity was attributed to an issue with the Binance API, which resulted in an exponential increase in trading volume and market pressure on Syscoin (SYS) trading. Consequently, the price of SYS surged dramatically, with buy and sell orders reaching remarkable heights.
“No coins were mined outside the regular mining schedule, and the Syscoin blockchain was not compromised.” – Sébastien DiMichele, Co-founder of Syscoin
In response to the incident, Binance implemented various measures to protect API users, including the reversal of irregular transactions and the deletion of all existing API keys. All Binance API users were instructed to recreate their API keys to enhance security.
Furthermore, Binance advised API users to better protect their keys and utilize the IP whitelist feature to ensure that the keys are accessible only to authorized users. DiMichele clarified that there was no attack on the Syscoin network, emphasizing that the incident was solely API-related. He noted that the Syscoin block explorer indicated that 1.2 billion coins were transferred back and forth within the same block, confirming that it was not a network attack.
To further safeguard users, Binance announced that starting July 14, 10% of all trading fees would be allocated to the Secure Asset Fund for Users (SAFU) to protect user assets in extreme cases. This fund will be stored in a separate cold wallet.
In summary, the incident on July 3 led to significant trading irregularities on Binance, prompting immediate action to secure user accounts and restore normal trading operations. The Syscoin network remains secure, with no compromise reported.
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