Key Takeaways:
- Binance released a statement on December 11 regarding some trading pairs’ unusual price movements.
- An inquiry was then started by the exchange to find the suspicious accounts that were the root of the issue.
A few trading pairs on the exchange experienced unusual price movements a while back. These assets include SUN, ARD, OSMO, FUN, and GLM, to name a few. The incident was confirmed on twitter by the global exchange’s official Twitter account.
Most investors would not anticipate a mysterious and unexpected volume surge during a weekend hour of trading on a variety of assets across the trading platform. Evidently, the volume was not coming from a natural origin.
Issues concerning the investigation into “abnormal price movements” for a few trading pairs on the exchange have been addressed by Changpeng Zhao (CZ), CEO of Binance.
CZ stated in his tweet that somebody had deposited the money and had begun purchasing. He continued by saying that other guys had done the same and that hackers didn’t deposit. He added that the investigation failed to uncover any connections between these accounts.
The exchange temporarily stopped withdrawals from some of these profitable accounts in order to look into the activities. As CZ put it:
One man put money down and began purchasing. (Hackers refuse to deposit.) Other guys came after. No connections between the accounts are visible.
The temporary locking of withdrawals on some of the profitable accounts, according to CZ, led to numerous media platforms objections from numerous nations. This action unsurprisingly drew criticism from the community, but to our surprise, many people are praising CZ for his inclusivity and his resolve to remediate the situation seriously.
Cz had also addressed the issue of excessive platform intervention, or as he puts it, “too centralised” attacks, etc. However, in his opinion, there is a limit to how much binance should and does intervene. These occurrences occasionally occur in the free market, and they must be given space to play out.
The unusual activity that raised concerns on social media did not seem to be the result of compromised accounts or stolen API keys, according to a tweet from Binance’s official account, which also declared that the investments are “SAFU.”
CoinMamba, a cryptocurrency investor and futures trader, presented a distinct interpretation of events when they claimed on December 8 that their Binance account had been compromised by a two-year-old API that was submitted solely to 3Commas, a provider of crypto trading software.
Binance has affirmed that it will update investors as soon as ongoing investigations turn up fresh details about recent price swings. The exchange has been quite vigilant about treating unusual activities ever since Binance’s BNB Cryptocurrency was Hacked for $100 Million.
