Changpeng Zhao responded to the multiple accounts ban on the Binance exchange and also confirmed that the exchange/account was not compromised.
Binance is a first-ranked crypto exchange, which provides services globally. This exchange is registered in many countries and also aimed to register in every country where cryptocurrency trading is allowed.
On 11 December, the Binance exchange noted that 5 crypto assets on the Binance exchange saw sudden price increments and further informed the Binance users on behalf of investigation that activity did not appear to be due to compromised accounts or stolen API keys & funds are also safe.
This activity does not appear to be due to compromised accounts or stolen API keys; funds are SAFU.
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We will update this thread should there be any new information.
— Binance (@binance) December 11, 2022
Changpeng Zhao responded to this and confirmed that it was not about any hacker activity. Instead, a guy deposited money & started to buy in bulk, and another guy started to buy, and so on, as usual market behaviour.
“Based on our investigations so far, this appears to be just market behavior. One guy deposited funds and started buying. (Hackers don’t deposit). Other guys followed. Can’t see the linkage between the accounts,” Zhao said.
Zhao also said that a few of the accounts may not withdraw funds from the exchange until everything became clear because users from multiple countries were involved & the exchange failed to find any kind of link between them.
We are aware of the concept of too much intervention from the platform, “too centralized” attacks, etc. There is a balance to how much we should intervene. Sometimes, these happen in free market, and we need to let it play out.
3/3.
— CZ
Binance (@cz_binance) December 11, 2022
It is worth noting that initial investigations were trying to figure out whether such activities were associated with hacked API-based trading or not.
Last month, a few Binance users reported that someone purchased huge amounts of crypto assets from their account. Later investigation found that Exchange was not compromised & it was part of the API data leaked from the third-party platforms, where Binance customers shared their API keys.
Read also: US SEC says it was reasonable to deny Bitcoin spot ETF applications
Binance suspends accounts of a few customers over price manipulation possibilities
https://bitcoinik.com/binance-suspends-accounts-of-a-few-customers-over-price-manipulation-possibilities/feed/
https://bitcoinik.com/binance-suspends-accounts-of-a-few-customers-over-price-manipulation-possibilities/feed/
