Binance Announces Momentary Shutdown After Syscoin Hack
After noticing unusual activity regarding the value of Syscoins on the framework, Binance announced a temporary cease of all transactions on its platform.
By manipulating the currencies total supply, hackers skyrocketed the price on 1 Syscoin to the equivalent of 96 Bitcoins, placing an incredible value on the cryptocurrency. Bitcoins were then withdrawn from the system before it was shutdown.
Binance began the process the resetting all functioning application programming interfaces and asked that any API-users on their framework recreate them as API’s became the key suspect of the attack. Syscoin picked up unusual behavior since Tuesday, prompting them to investigate the matter further.
At first, it was thought that one mined block somehow managed to generate one billion new Syscoins, although it was later revealed that hackers were constantly moving exactly 40 million Syscoins around using the same coins. As only 888 million Syscoins can exist at any given time, one billion coins would be impossible and was more than enough to prompt further investigation into the matter.
A few blockchains fell victims to fifty-one percent attacks in the last few weeks before money stolen was sent to Binance’s framework in an attempt to launder all of it. Blue, a blockchain security company, announced how fifty of the world’s leading cryptocurrencies were exposed to fatal flaws which could result in complete destruction, with the attacks occurring only one day later.
Due to the anonymous nature of Binance’s platform, the network has quickly become a favorite for criminals attempting to launder money through its system. Since Binance has no KnowYourCustomer policy, any withdrawals are completely anonymous and leave no leading evidence which could be traced back.
Many believe Binance will soon implement KYC and introduce it to its framework, as the number of criminal activities on its framework continues growing. As the investigation continued, Binance, known for its professional levels of communication between clients and users, sent out an email notifying all users of the API removal by the company and asking them to recreate their keys as a security measurement.
Later on, the CEO announced a full summarization of the attack once all details had been uncovered. The company also promised 70 percent refunds to any customers affected by the attack as well as a zero-fee trading bonus for its users. Binance also fell victim to a similar attack in May, where hackers used the same method to break into Viacoin.
A guide of how the Syscoin attack occurred was published, in which several steps were taken to carry out the hack. Hackers would steal API keys through malware over a very long time period and mine as many Syscoins as possible before flooding it back into the framework using the same exact coins mined over and over.