Binance suspends trading after Syscoin hack

July 04, 2018
Chris Wheal

Binance suspended trading late on Tuesday night after one of the tokens traded on the crypto exchange reported unusual transaction pricing.

Price irregularities were reported on Syscoin trading: Shutterstock

Syscoin, which is a hard fork of the Bitcoin protocol, announced on Twitter at around 8pm [London time] that it was investigating a “possible issue on the Syscoin blockchain”.

Syscoin hacked

It added: “Nothing is confirmed, but we have asked for exchanges to halt trading while we investigate.”

It was later announced, after investigation, that Syscoin had been hacked, causing irregular pricing in transactions on Binance, the world’s largest crypto exchange by trading volume, which accounts for nearly 9 out 10 of all Syscoin transactions.

Price rockets

Data on Binance showed that the price of syscoin tokens versus bitcoin (SYS/BTC) rocketed up to 96 BTC (highlighted below), having previously traded at around 0.00004 BTC – an incomprehensively large percentage gain.

 

Courtesy of Binance

Binance announced in response on its blog that it would undergo system maintenance. “Trading, withdrawals and other account functions will be suspended during this period,” it added.

API keys removed

The exchange later announced a problem with its API keys – which are used to identify users – and that it was removing all existing keys as a precautionary measure. At the time of publish, the exchange remained closed for trading until the maintenance was completed.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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