Binance explains irregular Syscoin (SYS) trading incident, affected users to get zero-fee trading offer
Binance posted a full explanation related to irregular trading, which forced them to suspend deposit and withdrawal. They mentioned that the irregular trades were detected from a number of API users. Soon they had to remove all existing API keys, they asked all API users to recreate their API keys.
In their recent post, they have mentioned that one shouldn’t give any third-party service providers access to their personal API key, one should use the IP whitelist functionality to ensure that the key is only accessible to the user.
Offers Binance promises to provide to affected users
According to their blog post, users who have been affected by choosing to trade the rising SYS price will get a zero-fee trading offer from Binance. The offer is valid between July 5, 2018, to July 14, 2018. For all other Binance users, they will be offering a 70% rebate on the trading fees. It is valid from June 5, 2018, and July 14, 2018. The rebate will be provided in the form of BNB, it is to be calculated using the closing price on June 14, 2018.
Binance promises to create a Secure Asset Fund for Users (SAFU) to protect the future interests of all the users. It is to start on July 14, 2018. They will be allocating 10% of all trading fees received into SAFU. It will be done to offer protection to the users and their funds in case of extreme situations. The fund will be stored in a separate cold wallet.
According to NewsBTC, the suspension came after a single Syscoin was purchased for 96 Bitcoin on the exchange. Tweets from both Syscoin and Binance twitter feeds confirm that crypto exchange has halted all transactions.Syscoin’s tweet mentioned, “As a precaution, we had requested exchanges halt $SYS deposit/withdrawal today after we observed odd trading behavior coupled with atypical blockchain activity. After investigating the #Syscoin blockchain is safe. We are asking exchanges to reopen. Detailed wiki post tomorrow.”
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