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Possible Hack of Third-Party Tools is to blame for Binance Users’ Loss of Funds

UPDATE: Binance was not hacked – official statement from Binance. What had happened was a large-scale phishing attempt. The hackers  stole users’ information through fake links made to look like Binance’s URL and webpage. They then added an API key to the compromised accounts so that they could drain them at a later date. This article, written by Michiel Mulders goes into more depth about the hack.

In short, Binance is not compromised, and they were able to halt withdrawals before the hackers were able to remove the stolen funds from the exchange.

 

Binance, one of the largest cryptocurrency exchanges by volume, has received numerous reports of suspicious activity due to a possible hack on March 7.

Binance stated that the issues that are being experienced are through the use of third-party tools and that the exchange itself has not been compromised. This means that the only users affected are those who have issued API keys on their accounts.

A Reddit user posted on the Binance Exchange subreddit, stating that all of their altcoins were sold at market rate.

According to their post on Reddit, Binance stated it is investigating user reports of “issues with [users’] funds.”

While Binance is investigating the issue, they have disabled all withdrawals.

Moderators of the CryptoCurrency subreddit recommend several courses of action for traders using a portfolio management tool or third-party trade bots that use Binance API keys. These include disabling those accounts on Binance or the tools themselves, disabling trade access to the API on Binance, or resetting the API key.