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Binance’s announcement regarding an incident of irregular Syscoin (SYS) trading

More than one billion Syscoin (SYS) was mined from a single block despite the fact that the cryptocurrency’s total potential supply is set at 888 million. The company has confirmed their blockchain was compromised and that they have requested all exchanges to suspend any trading of their tokens for the time being.

The hack on Syscoin is related to Binance suspended all trading due to one Syscoin with a value of $0.453290 being sold for 96 BTC worth $6.23 million on the exchange. The sale resulted in a massive pump of Syscoin’s price as it shot up 85% in value according to CoinMarketCap, before trading was halted.

Binance has recently made an announcement regarding an incident of irregular SYS trading

At 2018/07/03 20:18:00 (UTC), irregular trades were detected from a number of API users, triggering the internal risk management system. As such, Binance made a timely decision to suspend trading, withdrawals and other account functions.

The exchange has since taken the following actions relating to this incident:

  • To protect the safety of its API users, Binance removed all existing API keys and requested all API users to recreate their API keys.
  • Rollback of irregular trades.
  • For the users who were negatively affected by choosing to trade the rising SYS price, Binance will offer zero-fee trading between 2018/07/05 – 2018/07/14.
  • For all other Binance users, the exchange will offer a 70% rebate on the trading fees paid by them between 2018/07/05 – 2018/07/14. The rebate will be given in the form of BNB calculated using the closing price on 2018/07/14.
  • To protect the future interests of all users, Binance will create a Secure Asset Fund for Users (SAFU). Starting from 2018/07/14, the exchange will allocate 10% of all trading fees received into SAFU to offer protection to its users and their funds in extreme cases. This fund will be stored in a separate cold wallet.