The world’s largest crypto exchange, Binance, issued a notice yesterday acknowledging reports that some altcoins traded abnormally on the platform. The centralized exchange reported that investigations were underway and it would take appropriate actions against suspicious accounts.
Binance CEO Changpen Zhao later tweeted that the price movements of the altcoins in question appeared to be just market behavior. Zhao explained that one user deposited funds into their trading account, then started purchasing certain coins and many others followed suit.
Binance Temporarily Restricts Suspicious Trading Accounts
Zhao confirmed that Binance opted to temporarily restrict accounts connected to suspicious altcoin trading by preventing withdrawals. However, the exchange reversed the decision following numerous complaints on social media from users across the globe.
In a statement, Binance reported that the trading activity did not appear to result from stolen API keys or compromised user accounts. But the exchange added it would give further updates if relevant information became available.
Binance User Involves CEO in a Heated Exchange on Twitter
The clarification comes following concerns from one Binance user who claimed their API key got leaked via 3Commas, an intermediary trading platform. The user going by the name ‘CoinMamba’ on Twitter reported losing funds from the incident.
CoinMamba exchanged a series of tweets with the Binance CEO, at one point stating that it would be nice to get a refund. However, Zhao cited that the situation did not warrant a refund adding that it is vital for every user to keep their API key secure.
Also, Zhao revealed plans to restrict CoinMamba’s Binance account because the exchange does not want to service unreasonable users. Later, CoinMamba tweeted that Binance closed his account because of his previous statements. But the exchange’s customer care team responded that his account was set to “withdrawal-only” mode and not entirely closed.
Elsewhere, 3Commas has released a statement addressing concerns about attacks on their platform and API keys. It urges users affected by attacks to file police reports immediately so funds can be frozen and possibly recovered. 3Commas also advised its users to be careful of fake rumors shared by bad actors using falsified evidence to claim its leaking users’ API keys.