Binance Potentially Hacked for $45 Million, Announces Unplanned Maintenance [updated]

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TRADING ON BINANCE RESUMED AT 08:00 AM (UTC)

Hack status: unconfirmed

Update #1: Binance announces unplanned system maintenance; rumors of Binance’s Syscoin (SYS) API exploitation leads to theft of 7,000 BTC.

Update #2: Binance announces that all API keys will be reset as ‘precautionary security measure’.

Update #3: Binance issues ‘Incident Recap’ on the source of the root of the issue

Update #4 [NEW]: Binance announces trading will resume at 08:00 AM (UTC)

Full Story (developing)

Update #1

Binance, one of the leading cryptocurrency exchanges, has announced an unplanned system maintenance, which has sparked rumors.

The CEO also Tweeted that they were working on the situation although details remain unclear:

Binance’s Syscoin (SYS) API hacked?

Some Twitter users are speculating that some hackers abused a vulnerability in Syscoin (SYS) API at Binance.

Update: The hackers were able to recycle Binance’s API keys (this was a Binance issue, not a Syscoin (SYS) issue)

This led to the irregular trading and crazy price spike as shown below.

Further, according to @crypto_briefing, three large Bitcoin transactions totaling 7,000 BTC (approximately $45M USD) went out shortly before the halt in trading.

This user posted a video earlier explaining his similar observations:

In fact, our friends noticed and even tweeted (@xbtnet) about some extraordinary numbers behind SYS a few hours earlier:

We obtained a screenshot of some of the orders that were executed, and it’s not pretty. 13,152 SYS coins were sold at 1.1 BTC/SYS while 11 were sold for 96 BTC/SYS as you see in the image from an anonymous source below.

Update #2 – Binance announces API key reset

In its latest update, Binance indirectly expressed concerns over API vulnerabilities. This fits in perfectly with the Syscoin (SYS) API exploitation rumors that may have triggered the unplanned ‘maintenance’.

Update #3

Binance has issued an ‘Incident Recap’ on their blog regarding abnormalities in Syscoin (SYS) trading.

Although the report gives little to no detail on what actually happened, the statement mostly elaborates on its previous update regarding API keys. Users negatively affected by the event can submit a support ticket.

Binance announced in the very same post that it will be creating a Secure Asset Fund for Users (SAFU). SAFU will be the equivalent of a self-funded insurance policy ‘[t]o protect the future interests of all users”.

Update #4 – TRADING RESUMES

Binance announced that its ‘system maintenance’ is now complete and that TRADING WILL RESUME AT 08:00 AM (UTC).

We will keep updating the article as the story develops

Correction: we previously reported that Syscoin (SYS) may have been subject to a network attack, which allowed the hackers to mine unlimited SYS. SYS is merge-mined with Bitcoin; the network was NOT attacked.v

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