'All Funds Are Safe': Binance Denies Crypto Hack Rumors

Binance has reassured customers their money is still in their accounts after hours of speculation that the cryptocurrency exchange had been hacked.

AccessTimeIconMar 7, 2018 at 7:30 p.m. UTC
Updated Sep 14, 2021 at 1:54 p.m. UTC

UPDATE (7, March 23:55 UTC): In another update, Binance CEO Changpeng Zhao announced that all irregular trades have been reversed, saying the hackers actually lost some funds as a result.

UPDATE (7, March 20:10 UTC): Binance CEO Changpeng Zhao tweeted that the irregular trades have been identified, and will be reversed. He also warned users to learn how to secure their accounts against future phishing attacks.


Binance has reassured customers that their money is still in their accounts following hours of speculation that the cryptocurrency exchange had been hacked.

"All funds are safe," Binance chief executive Changpeng Zhao tweeted Wednesday afternoon.

Rumors that Binance has been hacked spread that morning after social media users reported seeing their balances at the exchange drained, sold at market rates and converted to viacoin. However, the exchange said its platform was not breached.

https://twitter.com/cz_binance/status/971454040704872448

In its initial statement on Reddit, Binance said it was investigating these reports, announcing all withdrawals had been suspended but pushing back against claims that the platform was hacked.

“As of this moment, the only confirmed victims have registered API keys (to use with trading bots or otherwise). There is no evidence of the Binance platform being compromised,” the post said. “Please remain patient and we will provide an update as quickly as possible.”

Discussion on Reddit indicated that investors using trading bots may have fallen victim to stolen API keys, but it is unclear how widespread the issue was.

Viacoin became one of the few cryptocurrencies to rise on the day, jumping more than 40 percent to $3.53, according to data site CoinMarketCap. Similarly, it saw a tenfold spike in trading volume on the day, beginning at roughly the same time as the hack rumors.

Meanwhile, bitcoin has recovered from its intraday low of less than $9,500 to about $9,675 as of press time, and prices appear to have stabilized according to CoinDesk's Bitcoin Price Index (BPI).

Editor's note: This article has been updated with new information.

Safe image via Shutterstock


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Opaque Platforms and Intertwined Protocols Pose Big Risk to Crypto

Second article in a series about risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
2
CoinDesk - Unknown
Putin Weaponizes Inflation

Examining a recent propaganda speech from the Russian leader.

CoinDesk - Unknown
3
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown