Several days ago Binance, the popular cryptocurrency exchange, was attacked by hackers. Users complained on Reddit about suspicious transactions occurring in their accounts. All their altcoins had been sold for bitcoin and that BTC was then used to pump the price of Viacoin. Viacoin grew by 40% in one day, and CoinMarketCap listed it as the third fastest growing cryptocurrency.
It’s interesting to note that only accounts with API keys deployed were vulnerable because they previously fell for a phishing attack. Binance stated the hackers had been collecting accounts for a while by redirecting users from a phishing site to the legit site after gathering enough information, thereby making things look legitimate. The hackers later created some trading bots using the APIs – these bots sold altcoins and pumped Viacoin. At its highest value, Viacoin was sold from 31 different accounts at a higher price. Binance’s risk and security team noticed the attack in time and blocked withdrawals, making it impossible for the attackers to withdraw the money. All the captured funds will be donated to charity.
After foiling the attack, Binance announced that they’re offering a 250,000 USD bounty in BNB tokens for anyone who can provide information leading to the arrest of these individuals, thus hopefully getting members of the group to turn on each other after they lost a significant sum of money. Binance also set aside $10 million USD for future bounties and offensive defenses of this type, and they called on other exchanges to join the fight.
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