Single Syscoin Sells for 96 Bitcoin Forcing Binance to Suspend Trading

Binance has suspended all transactions earlier this morning after a single Syscoin was purchased for 96 Bitcoin on the exchange.

Syscoin Blockchain Compromised

Information coming from both Syscoin and Binance twitter feeds confirm that Binance has halted all transactions and Syscoin has suffered an attack on their blockchain.

It is being reported that more than one billion Syscoin was mined from a single block despite the fact that the cryptocurrency’s total potential supply is set at 888 million. The company has yet to determine what has happened but has confirmed their blockchain was compromised and that they have requested all exchanges to suspend any trading of their tokens for the time being.

Jameson Lopp, a Bitcoin developer was quoted by Hard Fork about how hackers could have exploited a vulnerability in the blockchain’s protocol:

“Breaking the monetary supply rules for a cryptocurrency can’t be accomplished via a 51% attack; this indicates that a flaw has been found and exploited at the protocol level, it’s likely similar to the buffer overflow vulnerability that was exploited in Bitcoin in 2010 that allowed someone to create 184 billion BTC.”

Binance Halts Trading

The hack on Syscoin seems to be related to Binance suspending all trading due to one Syscoin with a value of $0.453290 at the time of writing being sold for 96 BTC worth $6.23 million on the exchange. The sale resulted in a massive pump of Syscoin’s price as it shot up 85% in value according to coinmarketcap.com, before trading was halted.

Binance’s twitter page is currently showing this latest announcement tweet:

Which links to a notice stating:

“Binance has removed all prior existing API keys and has now re-enabled API key creation. API users may now recreate their API keys from their user account center.

Another announcement regarding the re-opening of trading will be made once the maintenance is complete.”

At the time of writing, neither Binance nor Syscoin is correlating the breach on Syscoin’s blockchain with the dubious sale of the coin on the Binance exchange but others in the Twitterverse are making that connection for them.

If the inflated sale does turn out to be related to the attack on Syscoin’s blockchain it will be just the latest in a series of hacks aimed at exploiting altcoins and wallet security vulnerabilities.

 

Image from Shutterstock

Be the first to comment

Leave a Reply

Your email address will not be published.


*