Binance security compromised, shuts down and implements SAFU

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Earlier this week, a global leading  cryptocurrency trading exchange, Binance suspended all trading, withdrawals, and other site features on the platform in order to investigate a market spike which saw one Syscoin (which was trading for approximately $0.22 USD at the time) sell for the excruciating amount of 96 bitcoin (which equates to around $600 USD).

Users had picked up on the activity and took to social media to share their insight.

The exchange has since issued an incident report to its customers with an update on the situation and urged users to proceed with caution in the meantime.

Syscoin – a project which is looking to offer low-cost peer-to-peer transactions as well as offering businesses the platform on which to trade goods, services, and data – also launched an investigation to try and find out what issue arose to cause the trading spike.

Binance’s course of action has been to roll back the 1 SYS : 96 BTC transaction, to advise users to look after their personal key and login to the exchange, to recompensate users who were affected in the incident, and to offer support with discounted trading to those who were not.

Finally, the implementation of a Secure Asset Fund for Users (SAFU) has been initiated and the exchange has stated that from 14th of this month, they “will allocate 10% of all trading fees received into SAFU to offer protection to [their] users and [their] funds in extreme cases. This fund will be stored in a separate cold wallet”.

“All funds are safe,” according to Binance’s team, and added “#SAFU“.

Currently, day-on-day Syscoin has plummeted -24.34% and is trading at $0.211 USD.

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