Binance Claims Users Funds Are Safe After Syscoin Trading Rollback
Binance has published a detailed explanation regarding the events which occurred over the last couple of hours following the irregular trading activity involving Syscoin.
Earlier today, reports of a possible Syscoin hack circulated in the cryptocurrency industry as the Syscoin foundation requested that all trading platforms halt the $SYS deposit/withdrawal today after it observed odd trading behavior coupled with atypical blockchain activity.
Binance stated earlier that it suspended all trading activities involving Syscoin following an earlier buying transaction of Syscoin for 96 Bitcoins. In the latest update, Binance noted that irregular trades were detected from a number of API users that triggered the internal risk management system.
— Binance (@binance) July 4, 2018
The exchange have removed all existing API keys and requested API users to recreate their API keys. Following that, Binance also performed a rollback of all irregular trades in the platform.
To compensate users for the inconvenience, Binance is offering a zero transaction fee for all users negatively affected by trading $SYS during the incident. The offer will last until July 14. Other Binance users are offered a 70% rebate on trading fees paid between July 5 and July 14, that will be paid in $BNB.
SAFU Is Real
Binance has also officially announced the launch of its Secure Asset Fund for Users (SAFU). The exchange will allocate 10% of all trading fees starting July 14 to SAFU, which will protect Binance users’ funds in ‘extreme cases’.
The exchange said in a statement:
“Binance has achieved explosive growth in the first year. With this growth, we also experience many problems. We must reflect upon these problems, learn from them, and improve ourselves. We know in the course of making history, we will be tested again and again. We believe every test makes us stronger. And only if we fight together, can we move the industry forward.”
The ‘Funds are safu’ became a meme after a video of Bizonacci on Binance founder Changpeng Zhao went viral.
In the meantime, Syscoin is investigating the incident and will come with an official report soon.
As a precaution we had requested exchanges halt $SYS deposit/withdrawal today after we observed odd trading behavior coupled with atypical blockchain activity. After investigating the #Syscoin blockchain is safe. We are asking exchanges to reopen. Detailed wiki post tomorrow. pic.twitter.com/NEypr531zi
— Syscoin (@syscoin) July 4, 2018