The top cryptocurrency exchange in the world by trading volume (according to CoinMarketCap data) was forced to halt trading this week over suspicious cryptocurrency transactions. The occurrence triggered Binance’s internal risk management system after the activity was detected, prompting all buying and selling to be suspended on the popular exchange.
Earlier in the day, distributed network Syscoin tweeted about a possible issue with its blockchain, and requested that all exchanges halt trading while an investigation took place. Syscoin later explained their findings which were "odd trading behavior coupled with atypical blockchain activity."
Binance was among the exchanges that saw the “odd trading behavior.” According to reports, this caused strange transactions on Binance’s order books, which takes up over 85% of the cryptocurrency’s entire trading volume. Data shows that the price of SYS reached 96 BTC at one point, while previously trading at 0.00004 BTC – that means that someone was stuck paying over $630,000 for one SYS that previously traded for as low as $0.25 a coin.
After that, Binance suspended services to its customers for “system maintenance.” The leading crypto exchange published a blog post explaining the issue in more detail, and offering transparency into the steps it has taken to keep their customer’s funds safe.
Binance removed all existing API keys, and have asked API users to recreate their keys. They took the opportunity to reiterate the importance of keeping API keys safe and secure. Binance is also rolling back the irregular trades, hopefully including the 96 BTC sale of one SYS coin. SYS traders will enjoy zero trading fees until July 14, while all other Binance users will get 70% off trading fees during that timeframe.
Lastly, Binance has announced the Secure Asset Funds for Users, a cheeky acronym word-play on the popular meme “funds are safu.” Moving forward 10% of all trading fees on the exchange will go into this fund and will be used to "offer protection to our users and their funds in extreme cases,” Binance says.