Did Binance get hacked? And what’s happening with Syscoin?

Posted: 4 July 2018 6:10 pm
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Strange things are afoot.

What's happening now?

Binance has completed its "system maintenance" and will be resuming trading at 8am UTC (the timezone formerly known as GMT). Until then, there will be no trading but users will still be able to cancel orders, process withdrawals and use other account-related functions. Users should also recreate their API keys if applicable. A more detailed explanation is expected at a later date.

Syscoin has investigated and says everything's back to normal. It's similarly said that a more detailed explanation will be coming later.

Here's the Binance CEO with the situation in a nutshell.

To recap:

Someone apparently bought a small amount of Syscoin for a whopping 96BTC on Binance. It was put down to being one of those multi-million dollar trading mistakes that tend to happen every now and then, but at about the same time someone seems to be very wrong on the Syscoin blockchain, with someone seemingly mining and moving more coins than there should be in the total circulating supply.

The Syscoin team issued a warning and asked exchanges to freeze Syscoin trading.

And then at about the same time, 7,000BTC was moved out of the Binance hot wallet right after the unusual trade occured, and then the exchange suddenly went down for system maintenance.

That's where it stands at the time of writing, with something clearly wrong on Syscoin, and Binance suddenly going down for maintenance.

There's no explicit connection between the two events, except that the bizarre Syscoin purchase was on Binance, and that the timing all lines up in a way that seems to be beyond coincidence.

There's nothing but speculation circulating right now, and neither Binance nor Syscoin has issued any kind of official explanation. But if it is true that Binance got hacked, it would shake confidence in what's widely regarded to be the most security-competent exchange around.

What do we know?

It's now clear whether or not anything went wrong with Binance itself, but the unusual trade and sudden maintenance gives the impression that something unexpected happened there, while the strange activities on the Syscoin blockchain make it clear that something went very wrong there.

That both are happening at the same time probably isn't a coincidence.

Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VET, XLM, BTC, NANO

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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