After the recent suspicious attack of the FTX exchange, Binance users with a large portfolio on the exchange pointed to the possibility of hacking. Users stated that someone accessed their account. Here are the details…
Is there a risk of hacking for Binance?
As the market continues to experience the effects of the FTX crisis, statements about the possibility of a hack came in Binance. One user said that someone accessed their Binance account. Unbeknownst to him, he announced that a large order had been placed for the AXS token. He reported that the person(s) who accessed his account purchased $1 million worth of crypto assets. However, according to the statements, it is not Binance’s fault. In a Twitter thread, the CEO of the exchange expressed his concern about the situation.
He stated that Binance is trying to figure out what the problem might be. Shortly after, CZ made a statement confirmed by the user who almost lost his money.
Carlos confirmed the unrecognized orders were due to his API key leakage. He only has one active API key and it was used on Skyrex, a crypto trading bot platform. We will try to disable all API keys that was used by Skyrex, figuring out how to identify them now. https://t.co/cOANWOyAou
— CZ 🔶 Binance (@cz_binance) November 14, 2022
The problem is in the exchange’s API
The root of the problem seems to be in Binance’s API key. cryptocoin.com As we have reported, the vu key is used to place orders through various accounts, manage trading bots or some platform solutions. The Skyrex crypto trading bot was the solution used by the Binance user who had to close an unwanted AXS position. However, the API leak may not be due to the project, but to the user himself, who may have accidentally leaked their information. According to experts, if the source of the problem is Skyrex, users should immediately cancel the APIs through their account settings on Binance to avoid potential problems with their account.
According to CZ’s statement, they will take action to prevent the leak from getting worse. They will disable all API keys used by Skyrex without taking any action from users. Reportedly, only one account fell victim to the hacker. However, it is unclear whether the hackers gained access to other users’ funds. The token AXS, purchased by hackers, had a huge increase of 171 percent with the purchase. At the moment, however, it has returned to its usual trading range, regardless of this rise.
The stock market is trying to save the market
Meanwhile, as we announced in the morning, Binance CEO Changpeng Zhao announced that he has created a fund to save the market. Binance CEO Changpeng Zhao said in a tweet that the fund aims to mitigate the gradual negative effects of FTX’s collapse by helping projects that he describes as “strong, but in a liquidity crisis.”
While Zhao didn’t provide all the information on which projects would qualify, he told teams that believe they might meet the criteria to contact Binance Labs, the exchange’s venture capital arm. He also urged other industry players interested in joint investment to get in touch with them. “Cryptocurrencies are not going anywhere. We are still here. Let’s rebuild,” wrote Zhao.
