Syscoin gives extended debrief on Binance incident: no hack or attack

06 Jul, 2018
by David Robb
Syscoin gives extended debrief on Binance incident: no hack or attack

After an incident a few days ago involving some highly irregular Syscoin trading on the Binance platform, suggestions of a hack and other FUD were quickly spread around. Binance soon reassured the crypto community that no hack had taken place, and Syscoin has now released a lengthy debrief explaining what happened.

Published on Github, the debrief explains that the suspicious trading incident was simply "the result of a combination of (mostly) ordinary events". The blockchain wasn't hacked or attacked in any way, and it is fully operational as per its design.

Syscoin had released a new software update, 3.0.6, to fix a bug relating to calculation of the governance superblock fee, which wasn't immediately implemented by every miner. There was also a large number of transactions on the day in question, with a large increase in the Syscoin price.

According to the debrief, "Several large Bitcoin+Syscoin mining pools that had upgraded had set fee policies above the default rate for Syscoin. This caused only transactions that specified these higher fees to be accepted, and other transactions to 'back up'". Basically, the change in mining policy had caused many transactions to not be mined as they normally would.

Irregularities in block sizes were spotted by the team, and also "someone was using the top address of 46 million Syscoin (we speculate that this was an exchange wallet) to send withdrawals of Syscoin." The team decided to put a freeze on trading: "For precautionary reasons we told exchanges to halt; we felt if exchanges were under attack that we would mitigate the attacker from moving funds across exchanges to conceal traces of theft."

After confirming that no attack had taken place, API keys on Binance were reset, and all exchanges were able to commence trading again. Binance offered zero-fee trading for a week to anyone who had been affected, and a safe asset fund was established to protect users' funds.

Rumors of the apparent hack were quickly debunked at the time by the majority of the crypto community, with the potentially damaging FUD being limited due to good research. Syscoin mentions "how appreciative we've been of that community during a very interesting & volatile 24 hours!"

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Read more about: Binance Syscoin (SYS)

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