Binance user reported that someone gained access to his account and placed a $1 million order on the AXS token.
A Binance user complained that his account had been compromised on November 13. Additionally, he said that a large order was put on the AXS token, buying the digital assets for $1 million.
It was only a matter of time before Binance’s CEO clarified the situation by offering an explanation. CZ expressed his worry in a Twitter conversation and claimed that Binance was working to figure out what the issue might be. Shortly after, the user who almost lost his money confirmed CZ’s assertion.
Is Binance API Compromised?
In actuality, the Binance API key is what’s to blame. The Binance API key is well-known for controlling trading bots, giving the platform advantages over a traditional trading desk, and executing orders across numerous accounts.
The Skyrex cryptocurrency trading bot offered the Binance user a way to close a bad position in AXS. However, the user, who may have acted inadvertently, rather than the project itself, may have been to blame for the API leak.
Customers should immediately revoke APIs through their account settings on Binance if Skyrex is the source of the leak in order to avoid any issues with their accounts. Even if Skyrex’s users do nothing to stop the leak from getting worse, the CZ stated in their response that they would disable all API keys used by Skyrex.
According to the reports, hackers were only able to access one account; however, it is unknown if they also had access to the money of other well-known people.Notably, the CEO of a leading cryptocurrency exchange also revealed his plan to help crypto projects struggling with liquidity as the collapse of rival FTX sends shockwaves through the sector. The CEO also revealed his plan to introduce a fund.
