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Binance explains Syscoin incident, offers zero-fee trading and creates 'SAFU' fund

04 Jul, 2018
by Jelmer van der Dussen
Breaking News
Binance explains Syscoin incident, offers zero-fee trading and creates 'SAFU' fund

Binance has given a more detailed explanation regarding the events over the last couple of hours following the irregular trading Syscoin activity. In a statement released just now, the exchange is providing a recap on the incident.

Binance resumed trading activity at 8AM UTC after it closed down the exchange for a while for system maintenance. Binance suspended all its activities following an earlier buying transaction of Syscoin for 96 Bitcoins. Binance ensured customers that all funds are safe, and has now given an explanation on what happened.

According to Binance irregular trades were detected from a number of API users that triggered the internal risk management system. The exchange therefore decided to suspend all the activities.

Binance has taken a couple of actions following the incident. The exchange removed all existing API keys and requested API users to recreate their API keys. Next to that, Binance did a rollback of irregular trades.

Traders who were negatively affected by trading $SYS during the incident can open a support ticket and will be able to trade zero-fee until July 14. Other Binance users are offered a 70% rebate on trading fees paid between July 5 and July 14, that will be paid in $BNB.

SAFU
Binance also announced that it will create a Secure Asset Fund for Users (SAFU). Binance will allocate 10% of all trading fees starting July 14 for SAFU, that will protect Binance users and their funds in 'extreme cases'. 'Funds are safu' became a meme following the video of Bizonacci on Binance founder Changpeng Zhao, and with the launch of SAFU it's now 'a real thing'. 

The exchange notes in the statement that: 'Binance has achieved explosive growth in the first year. With this growth, we also experience many problems. We must reflect upon these problems, learn from them, and improve ourselves. We know in the course of making history, we will be tested again and again. We believe every test makes us stronger. And only if we fight together, can we move the industry forward.'

In the meantime, Syscoin is investigating the incident and will come with a statement soon.




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Read more about:BinanceSyscoin (SYS)

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Add a comment

elcanto +37
think what you want of these guys but their damage control and communication is spot on, great job cz funds are safu
04 Jul, 2018 - 09:33
funds are safu until they are not ;) not keeping anything there
04 Jul, 2018 - 09:35
elcanto +37
I have some for week trading but only a few %
04 Jul, 2018 - 17:19

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