- Binance Exchange suspended trading due to abnormal crypto transaction discovered on its platform.
- The exchange, however, continued with trading on 4th July at 8:00 UTC
News Update: Binance exchange has, however, continued with its trading services on 4th July at 8:00 UTC but stated that it will release a “more in-depth explanation of today’s maintenance in a later announcement.”
Binance exchange, the biggest crypto exchange globally by vol of transactions, had reportedly halted its trading services. The exchange did this few hours after detecting abnormal cryptocurrency transactions on its platform.
Syscoin, a revolutionary cryptocurrency created through a Bitcoin fork, tweeted on Tuesday 3rd July at about 21:00 UTC that it detected a possible problem within its system and afterward informed all crypto exchanges to halt the transaction of its SYS altcoin. After an investigation, Syscoin later announced that it has detected “odd trading behavior coupled with atypical blockchain activity.”
We are investigating a possible issue on the Syscoin blockchain, nothing is confirmed but we have asked for exchanges to halt trading while we investigate.
— Syscoin (@syscoin) July 3, 2018
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
However, the project has not yet revealed the finding from its investigation, but it seems the problem has caused abnormal cryptocurrency transactions to occur in the SYS order books on Binance exchange. According to data, this abnormality accounted for more than 87% of Syscoin’s total trading volume.
Binance’s 24-hour price high data shows that at a point 1 SYS was traded for 96 Bitcoin while its original price had been about 0.00004 Bitcoin. It remains uncertain how many Syscoin was traded at this abnormal price. This made Binance, upon detecting this irregularity, quickly suspend all trading services.
Sebastien DiMichele, co-founder of Syscoin, in response to an inquiry stated that:
“My understanding is that yes, Syscoin was sold for 96 BTC per unit at one point today. We saw massive bot activity, our community lets us know that they were having trouble with deposits at Binance.”
Binance exchange released a blog post about 3hrs after Sycoin’s tweet, that it has suspended all cryptocurrency trading services on its platform:
“[We will] undergo system maintenance, [while] trading, withdrawals and other account functions will be suspended.”
However, the exchange did not state whether the suspension is a direct result of the reported Syscoin’s issue, instead, Binance specified in an additional post that the system maintenance is as a result of some “irregular transactions which occurred on its platform. Binance said:
“Due to irregular trading on some APIs, Binance will remove all existing API keys as a precautionary security measure. All API users are requested to recreate their API keys.”
Shortly after the incidence, Syscoin’s price rose to about $0.50, which is nearly 100% increase in price but later plunged rapidly to about $0.25, according to price data from marketcoinprice.