Binance Users Report Unauthorized Transactions Connected to Viacoin Pump


Several traders at popular cryptocurrency exchange Binance are reporting the platform executed unauthorized orders through their accounts, triggering a 400% pump for lesser-known altcoin Viacoin.

On Wednesday, Binance users began flooding the exchange's Reddit page with reports that their accounts had implemented unauthorized purchase and sell orders.

«WTF is happening! ,» one exasperated user wrote. " Binance just sold all of my alts at market rate and I've got only the Bitcoin now. Is it because of account getting hacked or finance bot issue?"

«Everything was cleaned from my account. Even Bitcoin is gone. It was used to buy some Via coin that was random. All value gone,» the consumer added shortly after.

«Same Here! Buy Order executed VIAcoin at horrendous prices,» another user responded.

Really, Binance exchange data suggests that a ~325,000 VIA purchase order placed shortly before 3 pm UTC increased the price of VIA/BTC by several hundred percent.

A Binance representative immediately responded that the exchange is aware of the problem and is currently investigating it.

«We are investigating reports of some users having problems with their funds. Our team is aware and investigating the issue as we speak. Please remain patient and we will provide an update as quickly as possible,» the employee said.

The majority of the affected users said they had checked their login history for evidence of unauthorized access but said there was no suspicious activity, and several added that they have two-factor authentication (2FA) activated as an extra security measure.

Even so, the incident seemed to affect a limited number of consumers, and Binance later announced a temporary freeze on withdrawals, asserting that each of the victims it's identified had registered API keys — which are generally utilised in trading bots.

The company stated that there is «no evidence» that Binance itself had been compromised, and CEO Changpeng Zhoa stated on Twitter that «all funds are safe.»

If the traders' accounts were compromised through their API keys — that might have been accomplished through a phishing scheme — the hacker would probably have been able to trade on the account but not make withdrawals. Consequently, as one trader explained, the hacker probably used Viacoin buy and sell orders to launder the funds to his or her private account.