February 3, 2023

Binance users have reported abnormal transactions of some altcoins, including OM, NEXO, AMP, POLS, SUN, ARDR, BIFI, XVS, ARK, LOOM and OSMO, Wu Blockchain reported.

According to the report, the anomalous transactions have raised concerns about whether hackers stole some users’ API keys through 3Commas and are now using those accounts to conduct the transactions.

Binance Altcoin Trading
Source: Wu Blockchain

Binance denies API compromise

However, Binance has that refused that there was a hack or API compromise. The official account tweeted: “This activity does not appear to be due to compromised accounts or stolen API keys; funds are SAFU.”

The CEO, Changpeng Zhao, has added new information stating that investigations to date have shown that one account has deposited funds and started buying and other accounts have begun to do the same. Research shows no connection between the accounts.

He added that Binance temporarily blocked withdrawals on some accounts that benefited from the counter trades. This led to several complaints from different addresses on social media.

cz said:

“We are aware of the concept of too much platform intervention, “too centralized” attacks, etc. There is a balance between how much we should intervene. Sometimes these happen in a free market, and we have to let it play out.

Meanwhile, 3Commas also noted that it is working with Binance to investigate the incidents and determine if they are related to the API compromise.

Even with Binance’s clarification, many people are still concerned that this has something to do with users’ compromised API keys.

Similar event on FTX

In October, several FTX users reported that countertrading on their accounts led to the loss of their assets. One particular user lost nearly $1.6 million of their wealth on a counter-trade using DMG tokens.

Initially, 3Commas denied that there was no leak on its part. But it later turned out that several phishing websites imitated the design and interface of 3Commas. These phishing sites captured all API keys of users who used them unknowingly.

Hackers later used the API keys to access users’ accounts and place unauthorized transactions. At the time, the trading platform was urging users to create new API keys and update their linked exchange accounts.

With a similar situation now unfolding on Binance, there are concerns that 3Commas and the exchange are not providing complete information.

disclaimer

BeInCrypto has reached out to the company or individual involved in the story to get an official statement on recent developments, but it has not yet heard back.

Leave a Reply

Your email address will not be published. Required fields are marked *