Binance: What is Happening With Users' Altcoins
A developing story out of Binance, major cryptocurrency exchange from Asia, as users are reporting their altcoins are being sold without consent. "Binance just sold all my (altcoins) at market rate", expressed one Binance user. Apparently this user, and others, have confirmed that all of their altcoins are gone from their account, and were seemingly sold off, and converted to Bitcoin. Debunking any thoughts of a hack, a customer service rep stated that there is currently no need to change passwords, eluding to the fact that this issue is based on a technical difficulty. Binance has further released this information:
Despite the claims from Binance regarding registered API keys, other users on Reddit are making the same claim about the coins being converted, despite not using Binance's API. Binance has temporarily turned off the feature to withdraw.
As this story is still unfolding, we at CoinNinja will update this story as news is released.
Update: Changpeng Zhao, Binance CEO, has just Tweeted to users to calm any concerns:
Update 2: Changpeng Zhao has now stated that all fraudulent trades from Wednesday have been reversed. Contrary to prior reports, this WAS indeed an attempted hack into Binance accounts. The hackers used a phishing scam, using a similar URL, they were able to obtain multiple Binance users' account details. After users logged in using the phishing URL, they were then redirected to the actual Binance site, and not able to access the phishing URL for a second time. The hackers commanded the user accounts to buy ViaCoin at very high prices, inevitably shooting the price up by several hundred percent. Because actions like this raise alarms in Binance's risk-management system, withdrawals were disabled. So the 31 accounts that sold ViaCoin at the top price, exchange for BTC and the withdraw the funds never successfully withdrew. The ViaCoins that were deposited by the hackers (their own coins) were also frozen, and are now being given to Binance Charity.
Binance has stated that after a thorough security check, withdrawals have been resumed and their services are fully funcional. Binance urges all of their traders to "take special precaution to secure their account credentials."