Bitcoin, Crypto currency, Blockchain

Binance: Policy Change after overpriced Syscoin-sale

On 3. July was exchanged on Binance a Syscoin in the value of USD 25 Cent against 96 Bitcoins with a value of about 624.000 US Dollar. This triggered a panic, because behind the transaction, a Hack was suspected. The stock market promptly responded with a temporary closure, and even changed their Policy in the Future, there should be a special security Fund called Secure Asset Fund for Users (SAFU), the in extremely the users of cases protects against losses.

The Trade of the 96 Bitcoins was probably only the tip of the iceberg. Apparently there were several ‘unusual’ Trades, which could be a Hack of the API interfaces. API stands for “Application Programming Interface” and refers to the interfaces with the external programs to an existing software system can connect. This Trading Bots do, for example, in the case of a trading platform how to Binance. The external programmer will receive a so-called API Keys which allow you access. As a response to the supposedly illegal Trades, all of your existing API Keys have been declared now of Binance to be invalid, and the external programmer will have to generate new Keys.

Illegal Trades undone, the victims compensated

Also the ‘unusual’ Trades – including of trade with the 96 Bitcoins – you have undone. The potential victims are thus completely compensated.

It is unknown whether the 96 Bitcoins have already been lifted and Binance remains, therefore, to the loss of seats. As the world’s largest trading platform Binance is the relatively low loss, however, this is bearable. In order to protect itself and the User in the future against such attacks, has now been called the “Secure Asset Fund for Users” (SAFU). 10 percent of the Trading fees flow in a special pot that should help in extreme cases, Binance, to compensate the victims of Hacks.

As further compensation, all of the API-User, where it came to the problems are 14, to. July can trade without Trading fees. All the other Binance-Users receive in the same period, a 70 percent discount on all Trades, you are in the BNB can cashout.

The Binance Team took to the incident:

“In the first year, our trade has grown to platform rapidly. However, this tremendous growth brings problems, too. We will learn these points from them and constantly improve. It is clear to us that we will be tested in the future again and again and again. However, we believe that every challenge strengthens us. Only if we all fight together, we can bring the crypto industry forward.“

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