Binance and Viacoin; Here’s What Happened

Binance and Viacoin; Here’s What Happened

bitcoin Cryptocurrency News Scam Trading
March 8, 2018 by Ramaa Mohan
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After hours of speculation surrounding the alleged breach of the Binance platform, chief executive officer Changpeng Zhao tweeted, “All funds are safe,” on Wednesday afternoon.

The rumors about the alleged hack started after multiple account holders saw their crypto account balances drain out, sold at market value and converted to Viacoin.

All the funds that were drained in an unauthorized manner, were converted into either BTC or Viacoin and multiple users reported as much.

The users took to social media to call out the event to check whether they were isolated events. However, hours later, Binance refuted the claims, reversed all the trades and said there had been no breach of their platform.

A tweet from Changpeng’s official account was also later retweeted by Binance’s handle and here’s what it read:

In an initial statement on Reddit, Binance sought its users to remain calm and said all transactions had been suspended pending further investigations into events and out-right ruled out the possibility of a hack.

The coin that all the missing funds were converted into, Viacoin, was one of the only cryptocurrencies rising throughout the day. Incidentally, it also saw a tenfold spike in its trading volume that coincidentally started around the time the rumors about the hack was making the rounds.

A thread on Reddit came to a conclusion that investors using trading bots may have fallen victim to stolen API keys. However, the situation will only become clear after a thorough internal investigation carried out by Binance.

All the unusual trades have been reversed since and Changpeng has asked all Binance users to remain calm while they get to the bottom of what exactly happened on Wednesday and until they release an official report to its users.

To which too, he tweeted and this is what his tweet read:

Viacoin too came under the scanner because of the Binance breach and have distanced themselves from the events of Wednesday. Here is what they had to say:

Pending investigation, the unauthorized transfers have been reversed and the funds have been returned to the accounts they were taken from. A lot of speculation surrounds the breach and people are starting to think that it is an inside job. While this is unacceptable, such a breach is so taking a huge hit at the credibility of the exchange.

However, Binance is yet to release an official statement on what happened and its users waiting for the official report to understand what exactly happened to their funds and how.

Update – 

Company CEO just updated the situation and the platform has rectified all false trades –

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