Cryptocurrency & Blockchain Business

Was Binance Hacked? Syscoin Irregularities and 7000 BTC Apparently Stolen

Someone apparently bought a small amount of Syscoin for a whopping 96BTC on Binance. It was put down to being one of those multi-million dollar trading mistakes that tend to happen every now and then, but at about the same time someone seems to be very wrong on the Syscoin blockchain, with someone seemingly mining and moving more coins than there should be in the total circulating supply.

The Syscoin team issued a warning and asked exchanges to freeze Syscoin trading.

And then at about the same time, 7,000BTC was moved out of the Binance hot wallet right after the unusual trade occured, and then the exchange suddenly went down for system maintenance.

That’s where it stands at the time of writing, with something clearly wrong on Syscoin, and Binance suddenly going down for maintenance.

There’s no explicit connection between the two events, except that the bizarre Syscoin purchase was on Binance, and that the timing all lines up in a way that seems to be beyond coincidence.

There’s nothing but speculation circulating right now, and neither Binance nor Syscoin has issued any kind of official explanation. But if it is true that Binance got hacked, it would shake confidence in what’s widely regarded to be the most security-competent exchange around.

What do we know?

It’s now clear whether or not anything went wrong with Binance itself, but the unusual trade and sudden maintenance gives the impression that something unexpected happened there, while the strange activities on the Syscoin blockchain make it clear that something went very wrong there.

That both are happening at the same time probably isn’t a coincidence.

The situation right now

Binance has completed its “system maintenance” and will be resuming trading at 8am UTC (the timezone formerly known as GMT). Until then, there will be no trading but users will still be able to cancel orders, process withdrawals and use other account-related functions. Users should also recreate their API keys if applicable. A more detailed explanation is expected at a later date.

Syscoin has investigated and says everything’s back to normal. It’s similarly said that a more detailed explanation will be coming later.

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