Cryptocurrency exchange Binance resumed services on Wednesday, after suspending all trading and account activities to address concerns about “irregular trades” involving the Syscoin cryptocurrency, SYS. The trading suspension had been requested by Syscoin while it investigated “odd trading behavior coupled with atypical Blockchain activity.”
The irregular trading sent the price of one SYS to a high of 96 BTC – more than $600,000 each. The token had been trading at about 0.00004 BTC previously. According to CoinDesk, Syscoin founder Sebastien DiMichele said that he was aware of the unusually large price spike:
"My understanding is that yes, Syscoin was sold for 96 BTC per unit at one point today. We saw massive bot activity, our community let us know that they were having trouble with deposits at Binance."
Syscoin has since reported that its investigation confirmed that its blockchain is safe and promised to provide additional details in a wiki.
In an incident recap posted on the exchange website, Binance described its response to the risk alert: “To protect the safety of our API users, we have removed all existing API keys and requested all API users to recreate their API keys. We implore our users to take care of their API keys going forward." In addition, Binance confirmed that it would rollback all irregular trades.
For the users who were negatively affected by choosing to trade the rising SYS price, Binance will offer zero-fee trading between 2018/07/05 - 2018/07/14. If you traded SYS during the incident and believe you were negatively affected, please open a support ticket.”
The company also promised 70% rebates on trading fees for trades executed between July 5 and July 14. In addition, Binance announced that it will use ten percent of trading fees received by the exchange to establish a cold storage “Secure Asset Fund for Users (SAFU)” that will help protect customer funds against “extreme cases.”