Almost 2 weeks ago, the popular cryptocurrency exchange known as Binance, halted trading for close to 12 hours after its internal risk management system noted irregular trades with respect to Syscoin (SYS). What had happened is that the value of one SYS had been artificiality pumped by a number of API based traders or bots to levels of 96 BTC. Evidence of this can be seen in the tweet below that had noted the incident.
Sounds like a good deal.
— Crypto Rand (@crypto_rand) July 3, 2018
Binance implemented the following as part of risk mitigation measures and an action plan following the incident.
- Removed all existing API keys and requested API users to recreate them. The exchange further cautioned users to keep their API keys safe as well as not providing access to third-party service providers
- Non-regular traders on Binance are cautioned against creating API keys
- Rollback of irregular trades
- Any user negatively affected by choosing to trade the rising SYS price is requested to open a support ticket. There will also be free trading between 2018/07/05 – 2018/07/14 for the said users
- For all other users, Binance will offer a 70% rebate on trading fees paid between 2018/07/05 – 2018/07/14. The rebate will be given and calculated in BNB using the closing price on 2018/07/14
- To protect the future interests of all users, Binance will create a Secure Asset Fund for Users (SAFU). Starting from 2018/07/14, we will allocate 10% of all trading fees received into SAFU to offer protection to our users and their funds in extreme cases. This fund will be stored in a separate cold wallet
It is with the 5th action plan by the exchange that they wish to inform users that they have distributed the Binance Coin (BNB) rebate as promised.
In the announcement just an hour ago, the team at Binance stated that:
Binance has completed the distribution of BNB as part of the trading fee rebate (2018/07/05 to 2018/07/14) stated in the announcement linked below. You can login and check that the BNB has been credited to your account.
Thanks for your support!
Regular crypto-traders on the exchange have already reported seeing an increment in their holdings due to the rebate.